IT-Productivity paradox in banks a study of Indian banks in hyper IT Era

The present paper attempts to link banking technology with the financial productivity of Indian commercial banks. Till date, it is a matter of debate whether Technology leads to better financial returns. There is no conclusive evidence that IT induction improves financial performance of an organization. The scholars call it “IT Productivity Paradox”. It is generally believed that the technology provides efficiency, hence improves working and performance of an organization. This implies that with the technology induction, the financial performance of an organization should also improve. Findings of the paper show that the fully IT oriented banks are financially better off than the partially IT oriented banks. The various banking parameters of productivity and profitability have significantly improved in the recent years. However, for Indian banking industry, the correlation between Technology induction and financial productivity is negative though statistically insignificant and low.