PSBs lag behind MNCs, private banks in employee-revenue ratio
Dec 28 2010 , Mumbai
What is more interesting is that none of the domestic banks, including the private sector one comes in the top three list of higher revenue generation ratio as the No 2 in the BCG list is StanChart India, followed by HSBC India, says the report by the Boston Consulting Group India.
The data refer to the FY10 period, the report added.
Among the 22 banks covered in the BCG study, the State Bank, which leads the domestic banking space on every count, be it in terms of profit, asset base, market capitalisation or market share is ranked a poor 17th slot.
The banking behemoth SBI as over 2 lakh employees as of last fiscal, while the best performer Citi India has just about 7,500, and the best private sector player ICICI has about 35,000 (as of FY09).
According to the BCG report released recently, among the domestic banks, the new generation private sector lender Axis Bank is the second best performer with its per-employee revenue standing at Rs 41 lakh.
However, the state-run IDBI Bank, which is the youngest amongst the public sector lenders, tops among the PSBs with its average revenue generated per employee coming at Rs a good 38 lakh.
Among the old-generation PSBs, Oriental Bank of Commerce fares much better than its larger counterpart with an average revenue per employee of Rs 27 lakh.
While State Bank's two lakh plus employees together generated Rs 1,33,851 crore revenues with a profit of Rs 11,733 crore in the past fiscal, ICICI's 35,000 mopped up Rs 59,600 crore in revenues in FY09 and made a profit of Rs 4,843.41 crore during the same period.
However, HDFC Bank is not as good as its larger rival ICICI when it comes to making its employees generate more money for them, and it even lags behind three PSBs and two private sector ones with its average revenue per employee stands at Rs a low 24 lakh.
Bank of Baroda, Indian Bank and Union Bank of India come at the 10th slot with Rs 23 lakh each per employees, followed by PNB, Allahabad Bank, Bank of India and Canara coming next with Rs 21 lakh each. The next in line are IOB and Syndicate Bank with Rs 14 lakh each per employee, and Central Bank of India occupying the last slot.