EFFECTIVENESS OF PRODUCTIVITY MEASURES ON PERFORMANCE AND PROFITABILITY OF SELECTED BANKS IN INDIA
Keywords:
Productivity Measures, Profitability, Public and Private Sector Banks, Productivity, Return on AssetsAbstract
Productivity is one of the important measures which helps for growth and development of economy of the country. The productivity plays a crucial part in organizational achievement of excellence which is essential for dynamic society. Optimum productivity of a company depends on coordination between all inputs that yield maximum profitability with minimum effort. Hence the present study focuses on an objective to identify and compare the factors influencing the Productivity as well as profitability Performance of select Public and Private sector banks in India. The sample consists of 20 Banks which were operating in India. The study period considered for the study is ten years from 2011-2012 to 2020- 2021. The methodology which is used in the present study is Correlation analysis which helps to know the relationship between the select variables and Regression analysis is used to analyse the impact of select independent variables such as Sales Per employee, value added per employee, Profit before tax per employee, employee cost to sales and employee cost to value added on dependent variables like Return on Assets, return on Equity and Value added per fixed assets. Further Independent sample test is used to assess the relationship between Productivity and Performance measures of select Public and Private sector Banks in India. Thus, the results from correlation analysis indicate that almost all the independent variables except Sales per employee and employee cost to sales have significant relationship with dependant variables in both Public sector and private sector banks. The Regression result shows that Sales per employee is having significant negative impact on Return on Assets, return on equity and Value added per fixed assets. Independent samples test reveals that the Private sector banks are showing superior performance than Public sector banks.
References
Jha, S., & Hui, X. (2012). A comparison of financial performance of commercial banks: A case study of Nepal. African Journal of Business Management, 6(25), 7601-7611.
Chandan, C., & Rajput, P. (2002). Profitability Analysis of Banks in India – A Multiple Regression Approach. Indian Management Studies Journal, 119-129.
Hassan, M., & Bashir, A. (2003). Determinants of Islamic banking profitability. 10th ERF Annual Conference, (pp. 16-18). Morocco.
Wasiuzzaman, S., & Tarmizi, H. (2010). Profitability of Islamic banks in Malaysia: an empirical analysis. Journal of Islamic Economics, Banking and Finance, 6(4), 53-68.
Adwaita Maiti, & Sebak Kumar Jana. (2017). Determinants of Profitability of Banks in India: A Panel Data Analysis. Scholars Journal of Economics, Business and Management, 4(7), 436-445.
Ahmed, Abdulkader Mohammed , Khababa, & Nourredine. (1999). Performance of banking sector in Saudi Arabia. Journal of Financial Management and Analysis , 12(2), 30-36.
Alam, J., & Riyadh, A. (2003, July-August). Measuring Productivity and Profitability of Banking in Bangladesh . Cost and Management.
Shaik Abdul Mazeed et. al. (2019), Effectiveness of Capital Structure on Profitability-IT Companies Perspective, International Journal of Innovative Technology and Exploring Engineering (IJITEE), ISSN: 2278-3075 (Online), Volume-9 Issue-1, November 2019, PP 726-728
Almazari, A. (2011). Financial performance evaluation of some selected Jordanian commercial banks. International Research Journal of Finance and Economics, 68(8), 50-63.
Amanjot Kaur Sodhi, & Simran Waraich . (2016, January-February ). Fundamental Analysis of Selected Public and Private Sector Banks in India. NMIMS Management Review, 25(3).
Amit Kumar Singh. (2015). An analysis of profitability position of private bank in India. International Journal of Scientific and Research Publications, 5(5), 1-11.
Arora, S., & Kaur, S. (2006). Financial Performance of Indian Banking Sector in Post-Reforms Era. The Indian Journal of Commerce, 59(1).
Banik, B., & Das, P. (2013). Comparison of Financial Performance of State Owned Commercial Banks: A Case Study of Bangladesh. International Journal of Science and Research, 2(2).
Bhattacharjee, D. (1991). Productivity measurement in the nationalized commercial banks of bangladesh: A Multivariate Analysis. The Dhaka University Studies, 12(1), 25–43.
Bhuvan Vyas , & Dr. Vijay Pithadia. (2012). Productivity in Service Sector: SBI and IDBI Bank. Indian Journal of Applied Research, 2(2), 107-108.
Brajesh Kumar. (2016). A study of Productivity of Employees in Public sector Banks of India and Nepal. Effulgence , 14(2), 12-18.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
