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Public sector bank's employees more productive
By SiliconIndia | Monday, 11 January 2010, 18:59 Hrs |
16 Comments
Contrary to the general perception, public sector banks' (PSB) employee productivity grew faster than that for private sector banks in this period. As of March 2009, both private banks and PSBs had average business per employee of
7.44 crore. However, private banks generated higher profits/employee (6.1 lakh) with fee income forming a significant proportion of their earnings (which is outside the core business). Fee income for private listed banks contributed 25 percent of their net revenues for financial year (FY) 09.During the last five years, PSB increased their branch network by two percent; however, the employee strength has fallen by one percent in spite of recruiting more than 26,000 people in 2008-09. The decline in employee base of PSBs during this period was due to a good portion of the workforce getting superannuated and the implementation of VRS scheme in 2000 to rationalize the workforce. More than 1.26 lakh employees of 26 banks were given the VRS option.
Punjab National Bank, Canara Bank and Central Bank of India have seen their employee strength fall the most among PSBs. IDBI Bank, Corporation Bank and Oriental Bank are the top three PSBs in terms of productivity.
Private banks increased their workforce by more than 110 percent over the five-year period. Private banks improved their business per employee by 28 percent. Some private banks employ direct selling agents who bring in business but don't figure on the bank's payroll; this could overstate their productivity to some extent. Private sector banks such as ICICI Bank, Axis Bank and YES Bank witnessed improvement in their employee productivity in terms of both business and profits. HDFC Bank, Kotak Mahindra Bank and IndusInd Bank are the only banks which have witnessed decline in their productivity over the years. HDFC Bank's merger with Centurion Bank of Punjab has taken a toll on its productivity.
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Reader's comments(16)
1:
Come on Every one know.... Only the reason pepole are still with PSU bank is low service rate and charges and fees... other wise ... service wise and staff coopration wisr they are far behind hen privete players.... so, banking is always service industries... and sorry but to say.... that public plyer employes are not doing well ....other wise why people are shifting to privet bank serives...i had expricence with both the bank....
Posted by:YASAR
- 15 Feb, 2010
2:
Because, the employees of PSB have been pushed to show their productivity due to heavy competition between banks in recent days. Those are days, I have seen PSB employees reading weekly magazines in their business hours....still in some places this can be seen as their job is highly secured compared to Private bank employees.
Posted by:Ranganathan
- 12 Jan, 2010
3:
Now Bribe the private bankers. Remember Work is God n Health is Wealth
Posted by:Gods must be crazy
- 12 Jan, 2010
4:
what an irony, performing best but getting least in terms of salary ? Only this news can be the perfect answer for our govt and IBA for not increasing the salary of bank's employee at par with centeral government employee. No country can become developed country where performers don't get reward instead non-performers get high reward. Sorry but in view of the same India can't become developed country by 2020.
Posted by:Arvind
- 11 Jan, 2010
5:
If anyone not happy with the salary of PSU banks can always get a better salary outside. The whole world of opportunities is yours... enjoy but don't crib..
GMA Replied to: Arvind
- 11 Jan, 2010
6:
People are doing the same they are using PSBs as experience factory, and looking after other opportunity, we 10 simultaniously joined a PSB out of 10, 8 already left the bank with in 3 years..........so always try to listen truth instead advising other. everyone has a right to put up his words.
ABC Replied to: GMA
- 12 Jan, 2010
7:
I think this is wrong statement, becoz public sector Bank employees are working only 5-6 hours but Privet Bankers are working 10 hours.
Posted by:Dev
- 11 Jan, 2010
8:
It doesn't matter how long you work but quality of work matters... Hmm
GMA Replied to: Dev
- 11 Jan, 2010
9:
If the productivity has more than doubled in last five years in public sector banks why don't they increase the wages of the employees in psu banks by two fold.
Posted by:rakovei
- 11 Jan, 2010
11:
give proper reason why it's not possible........
Arvind Replied to: kraun
- 11 Jan, 2010
12:
Hello to all
I believe it not the productivity increase its basically earlier very less person in PSU bank was doing there duty seriously now some of them start working due to some pressure and some educated customer.
See no of Bank offer VRS and lot of people get the VRS there is no effect on business running well means they were surplus employee (staff) to bank .
The process are going fine because the new generation like us want to work hard and serious about work don,t wanted to cheat where the seniors who were placed in bank from couple of year they were not ready to work and they were doing nothing,
Note:- i am not working in any bank.
now govt have to learn this and change the old staff and give opportunity to new generation ,
well in more of PSU bank u see the HOD ( fr example computers, debit or account) he is less qualified and person who are qualified like computer graduate, CA and much more qualified are reporting to them the reason behind same due to seniority.
I am 100 percent agree with "karuna" there is need to increase salary but same time there is need to punishment for older employees ( either in terms of money or promotion) why they were not working well.
And one more thing private bank made policies and PSU bank are just adopting them is there any PSU bank who starts new policy or give relief to customer, we all have to give thank full to private bank who taught lesson to PSU bank. Earlier taking a loan from PSU bank was such a tedious task i believe everybody aware about same and half of Laon amount was paid to bank authorized person for clearing the same, after that no body was ready to refund the same and absolutely no body want.
there were lot of agents(Dalal) who have some relationship with bank Representative and u know what they do...
If anybody do survey still in some village some PSU staff have very bad attitude , very bad knowledge and they are cheating villagers. and still those person are expecting growth.
well i apologize if i hurt anybody.
I believe it not the productivity increase its basically earlier very less person in PSU bank was doing there duty seriously now some of them start working due to some pressure and some educated customer.
See no of Bank offer VRS and lot of people get the VRS there is no effect on business running well means they were surplus employee (staff) to bank .
The process are going fine because the new generation like us want to work hard and serious about work don,t wanted to cheat where the seniors who were placed in bank from couple of year they were not ready to work and they were doing nothing,
Note:- i am not working in any bank.
now govt have to learn this and change the old staff and give opportunity to new generation ,
well in more of PSU bank u see the HOD ( fr example computers, debit or account) he is less qualified and person who are qualified like computer graduate, CA and much more qualified are reporting to them the reason behind same due to seniority.
I am 100 percent agree with "karuna" there is need to increase salary but same time there is need to punishment for older employees ( either in terms of money or promotion) why they were not working well.
And one more thing private bank made policies and PSU bank are just adopting them is there any PSU bank who starts new policy or give relief to customer, we all have to give thank full to private bank who taught lesson to PSU bank. Earlier taking a loan from PSU bank was such a tedious task i believe everybody aware about same and half of Laon amount was paid to bank authorized person for clearing the same, after that no body was ready to refund the same and absolutely no body want.
there were lot of agents(Dalal) who have some relationship with bank Representative and u know what they do...
If anybody do survey still in some village some PSU staff have very bad attitude , very bad knowledge and they are cheating villagers. and still those person are expecting growth.
well i apologize if i hurt anybody.
indian Replied to: Arvind
- 11 Jan, 2010
13:
i wud put my life on bet .. no ways this is true
SCBian Replied to: indian
- 12 Jan, 2010
14:
This is true brother... If you go to SBI or any other Public Sector Banks you can see this type of attitude...
sherbin Replied to: SCBian
- 12 Jan, 2010
15:
It's neither PSU employees' effeciency nor their commitment towards buisness growth(their responses/atttiudes/body languages are best e.g, more than 50% of those visiting banks would acknowledge this, I believe), it's primarily the faith reposed on the PSUs in the light of economic melt down & to some extent the hidden cost of the PRIVATE BANKERS.
muzaffar Replied to: sherbin
- 12 Jan, 2010
16:
Trust me guys...the pressure in private banks is atleast 50 times than that of PSU banks .. no comparison whatsoever...
Mayur Replied to: muzaffar
- 13 Jan, 2010
Beautiful and dress selection, please go to Dresses
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