A Comparative Analysis of Labour Productivity in Public, Private, and Foreign Banks in India: An Empirical Study

Abstract

This study investigates the labour productivity across banking groups in India, focusing on public sector
banks, private sector banks, and foreign banks. Using secondary data sourced from the Reserve Bank of
India (RBI), the study analyzes various key indicators of productivity, such as deposits per employee,
advances per employee, investment per employee, business per employee, income per employee,
expenditure per employee, and the overall employee productivity index. The findings indicate that foreign
banks have the highest productivity levels, while public sector banks lag in several metrics. The analysis
also suggests that differences in organizational structure, objectives, and scale of operations significantly
impact the performance of each banking group. The paper highlights trends over time, offering a
comprehensive view of how labour productivity has evolved across these groups and provides insights into
the implications of human resource utilization in the banking sector.