Journal of Commerce and Management Thought
  • Year: 2013
  • Volume: 4
  • Issue: 3

Growth, Profitability and Productivity an Empirical Study of Public Sector Banks in India (From 2005–06 to 2010–11)

  • Author:
  • Dhananjay Bapat
  • Total Page Count: 2
  • Page Number: 517 to 518

Online published on 12 July, 2013.

Abstract

The study examines the relationship among growth, profitability and productivity of Indian Public Sector Banks. For measuring profitability, return on assets (ROA) was selected and for assessing productivity, business per employee and profit per employee was used as a measure. The Indian Public Sector Banks are selected as they contribute 74.20 percent to total deposits of scheduled commercial banks and 75.07 percent to the total credit of scheduled commercial banks. Findings intend to assess whether differing growth rates for Indian Public Sector Banks have an impact on profitability and productivity. During the study period, Indian Public Sector Banks grew at compounded annual growth rate of 24%. The study concludes that change in growth rates does not significantly affect the profitability. While profitability was not affected by change in growth rate change, productivity was affected by change in growth rate for select years. The business per employee and profit per employee for remained higher for banks with higher growth rates. Significant differences were observed for five out of six years for business per employee and for three out of six years for profit per employee with change in growth rates.