Evaluating Employees' Intellectual Capital Performance of Commercial Banks in India

This paper attempts to analyse the intellectual capital performance of different commercial banks in India. Secondary data regarding pay, total income and expenditure pertained to 2006-07 to 2011-12 were collected from websites of RBI. Value added intellectual coefficient (VAIC) was used to measure the intellectual capital efficiency in this study. The results indicated that foreign and new private sector banks ranked high towards human capital efficiency and value added intellectual coefficient. VAIC score is indirectly motivating and reflecting the profit motive of banks only rather than the number and volume of business concentrating to all sections of people. Public sector banks topped the list with regards to capital employed efficiency. Even though, VAIC score for public sector banks are less when compared to foreign banks and new private sector banks but public sector banks are performing well by achieving the priority sector loans, agriculture credit lending, education loan, financial inclusion, DRI scheme, BPL customers and social banking etc. The policies of financial inclusion, DRI scheme, BPL customers, social banking etc., also made public sector banks to add more value to their performance. Thus, along with VAIC performance, social and priority sector capital can also be included for analyzing the performance of banks.