How to improve low levels of productivity in Indian banks? — Part-II

Branch productivity, a crucial factor of total productivity, evaluates branch level productivity means proportionate production of the banks per branch in terms of deposits, credits, business, total income, total expenditure and establishment expenditure. Every branch contributes rigorously to the productivity of a total bank and thus an outcome of all the branches functioning under the same bank. It is equally important to note that per branch productivity portrays the real picture and hence kicks off the banks to take necessary steps to be in command of the adverse position, if so. IT is playing a vital role in transforming the business so forth branches are not the exceptions. That’s why branch productivity is necessary to evaluate in the era of IT to examine that how the branch level productivity is responding.

The following suggestions can be considered for the purpose of improving productivity:-

1. There should be periodical meetings of staff members at various branches and offices so as to get their commitment and co-operation in the matter of implementation of accepted policies and programs.
2. There should be a system of maintaining workload information thereby providing the required data base for the assessment. There should be assessment of staff strength not only in respect of branches, but also in respect of administrative offices too.
3. There should be comprehensive scheme for recognising the good efforts made by the employees at various levels. The contribution of officers and staff should be suitably recorded and recognised and the feed back in this regard should be given to them so as to motivate them.
4. Better deployment of staff resources, linking of performance budgeting on the part of branches in various areas, minimising controllable expenses and bring about suitable attitudinal changes in the staff members will help improve productivity.

Better work organisation, effective supervision and proper work distribution will no doubt help to achieve some improvement in productivity, but enduring results can be obtained only by motivating employees and by ensuring their participation in the Bank’s function. If banks are to grow on sound and healthy lines, employees have to adopt appropriate strategies and plans for improving productivity. Comprehensive planning in respect of all areas and parameters including productivity and profitability from the grass root level of branches with the participation of all employees at all levels will be vital from the point of view of improving the performance of banks.

(The views expressed by the author in the article are his/her own.)