Productivity Trends of Commercial Banks- A Comparative Study of Public Sector Banks and Private Sector Banks

Sound and Strong Financial infrastructure is one of the basic foundation stone for the development of any economy. Banks play a prominent role in financing the economic needs of the country. Productivity leads to efficient utilization of resources. Measurement of Productivity in banking is necessary to improve the financial soundness of banks. The present paper attempts to measure productivity trends of Public sector banks (PSBs) and Private sector banks (PBs). In this paper four types of productivity are analysed that is branch productivity, labour productivity, operational productivity and financial productivity. The time period of the present study is from 2001-02 to 2009. The paper concludes that in terms labour and branch productivity PBs performed better than PSBs. On the other hand, in terms of operational and financial productivity PSBs performed better than PBs. In the end paper suggests measures to improve the productivity of the both PSBs and PBs.