Branch Productivity of Selected Indian Public and Private Sector Banks

Abstract

We examine the comparative performance of branch productivity of selected Indian public and private sector banks during 2001 to 2015. Ten branch productivity ratios have been selected for measuring the branch productivity. Study finds that private sector bank branches are more competent than public sector bank branches as out of ten indicators in terms of ratios, nine ratios reflect better performance in case of private sector banks and one ratio i.e. burden per branch was same in both banks. One tailed ‘t’ test result shows that the burden per branch of both public and private sector banks is same. However, the public sector banks are improving in branch productivity as their CGR has upward trend and comparatively the growth rate is greater than private sector banks.