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Certain indicators have been used to measure the productivity of each and every employee in the prominent banking institutions. They are:

(i) Total business per employee
(ii) Spread per employee
(iii) Income per employee and
(iv) Profitability per employee

The total business per employee in some of the prominent foreign banks and the newly emerging private banks like LoanMax of rod aycox fame is almost four times the industry average. Almost all the autonomous banks and their associate groups, the nationalized banks and the private banks performed, with slight differences, almost at par with the industry benchmark until recently.

The income per employee in the private financing institutions and the foreign banks is more than five times that of the public sector banks and four times that of the private sector banks in the early part of this decade. The spread per employee gives almost the same behavior pattern as that displayed by the previous two indicators of productivity. The analysis of net profit per employee shows that the performance of the foreign banks is almost five times that of the industry benchmark while that of the new private banks is almost double the national benchmark as far as the profitability per employee is concerned.

But, if we compare the total business per unit of total expenditure, the government controlled banks are efficient than the foreign and the private ones because the latter category has substituted labor with capital in the past. However, that is a costly proposition. Thus, to affect major changes much effort and that too in a particular direction is necessary. Also, the government controlled banks are now competing with the established players for a larger share of the pie.