Volume : II, Issue : II, November - 2012

Productivity in Service Sector: Sbi & Idbi Bank

Mr. Vyas Bhuvan Jayvantbhai, Dr. Vijay Pithadia

Abstract :

The productivity concept as applied in manufacturing industries cannot be applied in service sector like bank. Bank provides various types of services like acceptance of deposits, borrowings of loans and advances, creation of credit, foreign exchange business, merchant banking activity, remittance of funds etc. Thus, bank is a multi product service industry thats why it is complicated to measure the output of banks. As banking is basically a service industry, quantitative specification of real output and input are hard to define and determine. The universal yard sticks of banking economics are profit per square foot and profit per employee. The working group appointed by RBI under the chairmanship of Mr. J.C. Luthare observed that the operational costs of the banking system have increased steadily due to factors are not under the control of the banks management no systematic attempts have been made so far to adopt scientific methods to improve productivity and efficiency in the banking system. For measuring productivity in banking industries the indicators can be divided into parts: (I)The indicators measure output considering number of employees i.e. Productivity per Employee, (II)The indicators measure output considering number of anches i.e. Productivity per Branch.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Mr. Vyas Bhuvan Jayvantbhai, Dr.Vijay Pithadia Productivity in Service Sector: Sbi & Idbi Bank Indian Journal of Applied Research, Vol.II, Issue.II November 2012

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