Newton Kumar who is known on Twitter as @idesibanda has compiled data on the banks’ business and employee strength based on annual reports of the banks. The data on number of customers per employee throws new light on the performance of employees of Public Sector as well as Private Sector Banks. Though it is not official data, it is true data based on published materials.
Usually the performance of Banks is analysed based on business generated per employee, which does not reflect the correct position, because Public Sector Banks have a large number of small accounts while Private Banks have a large number of high value customers.
The data is reproduced below.
Work Load in Banking Industry
While SBI has 1680 customers, the leader among Private Sector Banks, HDFC has 467 and ICICI has just 353 customers per employee. The lowest per-employee customers in Public Sector Banks is 1348 in Canara Bank and the highest is 2500 in the Bank of Maharastra.
The lowest customers per employee among Private Banks is 325 in the Axis Bank and the highest is 923 in the Federal Bank.
Public Sector Bank employees are getting lesser salary than their peers in Central Govt as well as at the LIC. This over exploitation is leading to stress, suicides and frustration among the employees. The average customer per employee ratio is 6 times of the Private Banks. The Central Govt has been restricting bank managements from recruiting more staff, saying digitalization will take care of it. The reality is private banks are also focusing on digitalization and if they need more staff, Public Sector Banks definitely need more staff.
It is high time the Managements, Unions and Associations take a serious view. During the pandemic, Public Sector Banks have lost more than 1300 employees to Covid-19 as there was no lockdown, no work from home for them.
But unfortunately, the Government is moving ahead towards privatisation.
Another important data published by Deal 4 loans, is the Best Banks in India 2021, based on 629035 views. The most customer friendly Bank is the Corporation Bank (Public Sector), followed by the State Bank of India (Public Sector), Axis Bank (Private Sector) and the Central Bank of India (Public Sector).
They have done an analysis based on 16 parameters, the results are as follows-
- Disclosure about charges and interest rates – Union Bank
- Pro-active communication about new products/services – Union Bank
- Trustworthiness – HDFC Bank
- Complaint Resolution – State bank of India
- Wide ATM coverage – HDFC Bank
- Professionalism of the company –
- Convenient banking hours – Canara Bank
- Well-trained staff – Axis Bank
- Courteous and friendly staff – Union Bank
- Faster service at branches – Federal Bank
- Knowing the customer and their needs – Canara Bank
- Good Internet banking – Axis Bank
- Efficient processes – State bank of India
- Effective communication on developments – Axis Bank
- Innovative company – Union Bank of India
- Good phone banking – Axis Bank
The overall ranking of top 10 Banks in India is given below:
If you take a closer look the 3 Private Banks in the list HDFC, ICICI and Axis Banks were promoted by the Govt and their root is in the Public sector. HDFC Bank emerged from the Housing Development Finance Corporation (Public), ICICI Bank from the Industrial Credit and Investment Corporation of India (Public) and Axis Bank from the Unit Trust of India (Public) and they continue to get favours from Govt.
So privatisation of Public Sector Banks will be a disaster to the common man.
The Customer Base of HDFC is just 5.6 crores, ICICI’s only 3 crores and Axis bank is a mere 2.6 crores. Compare it with SBI which has 42 crore customers and PNB which has 18 crore customers.
The over exploitation of employees in Public Sector Banks should stop. Number of branches and employees should increase many folds and their salary, allowances and pension should be at par with the Central Govt as they are the ones to implement all the Govt schemes. They also deserve a 5-day week extended to the Central Govt and the LIC.
This alone will lead to real Financial Inclusion.
Thomas Franco is former General Secretary of All India Bank Officers’ Confederation.
Picture courtesy: Mahadesh R/Twitter
Centre for Financial Accountability is now on Telegram. Click here to join our Telegram channel and stay tuned to the latest updates and insights on the economy and finance.