SAMVAD: International Journal of Management

Open Access Open Access  Restricted Access Subscription Access

Are Public Sector Banks Deploying HR Cost Profitably? Overview of Decade Ending 2013-14


Affiliations
1 Savitribai Phule Pune University, Pune, India
2 Sinhagad Institute of Management, Pune, India
 

With the advent of Basel III and other global and internal challenges, Indian banks have to address several issues simultaneously. Capital shoring up, financial inclusion requirements, risk mitigation and NPA issues are some of them. The common underlying factor among all of these is achieving, maintaining, protecting and growing profitability. To ensure sustainable advantage in all areas, it is essential that banks make all efforts to use every resource at their disposal towards this purpose. Huma resource has always been a key factor in success and profitability of banks. It also represents a major part of operating cost. Profitable deployment of HR cost will ensure both operating and financial advantage. Public sector banks in India have faced several challenges with respect to HR cost. The demand for competitive salaries and growth of business has led to substantial rise in HR costs of public sector banks in recent years. However there is a need to see if the costs are being deployed profitably. Profitable deployment of any cost indicates more efficiency in use of resources and hence a move towards better profitability. With the help of the HCROI ratio and statistical techniques, the study tries to find out if they have moved towards more profitable deployment of HR cost in the decade ending 2013-14.

Keywords

Bank Profitability, HCROI, HR Cost, Student's T-Test.
User
Notifications
Font Size

  • Cecchetti, S. (2012). Money, Banking and Financial Markets. New Delhi: Tata Mcgraw hill Education Pvt. Ltd.

  • Committee on HR Issues of PSBs. (2010). Report of the committee on HR issues of PSBs. Retrieved from http://financial- services.gov.in/reports/HRIssuesOfPSBs.pdf

  • D'Souza, E. (2002). Employment and Human Resource Practices in Public Sector Banks in the Nineties. Labour Market and Institutions in India: 1990 and beyond, Shuji Uchikawa.

  • Fitx-Enz, J. (2009). The ROI of Human Capital : Measuring the economic value of employee performance. Amacom, NewYork,

  • Heffernan, S. (2004). Modern Banking. West Sussex: Wiley

  • Jiang, G., Tang, N., & Angela, SE. (2003). The Profitability of the Banking Sector in Hong Kong. Hong Kong Monetary Authority Quarterly Bulletin, 1-10. Retrieved from http://www.hkma.gov.hk/media/eng/publication-and-research/ quarterly-b ulletin/qb200309/fa1.pdf

  • Kumar, S., & Sreeramulu, M. (2007). Employees’ Productivity and Cost - A Comparative Study of Banks in India During 1997 to 2008. Reserve Bank of India Occasional Papers, 28(3), 35-50.

  • Rao, K.S. (2013, March). Productivity, Cost And Profitability Performance of Scheduled Commercial Banks in India-A comparative evaluation. International Abhinav International Monthly Refereed Journal of Research In Management & Technology. 2, 130-140.

  • Shah, A., Garg, A., Poddar, B., Aggarwal, N., Mehrotra, P., Goyal, R., & Tripathi, S. (2010). Indian Banking 2020

  • Making the Decade's Promise Come True. BCG Publication, 1-47. Retrieved from http://www.iba.org.in/events/ ficci-sep10.pdf

  • Shirai, S. (2001). Assessment of India’s Banking Sector reforms From The Perspective of The Governance of The Banking System. 1-24. Retrieved from http://www.unescap. org/drpad/publication/fin_2206/part4.pdf

  • Staikouras, C. K., & Wood, G. E. (2004). The Determinants of European Bank Profitability. International Business & Economics Research Journal, 3 (6), 1-12. Retrieved from www.cluteonline.com/journals/index.php/IBER/article/ download/.../3743

  • Sinha, V. (2015). It Pays to Be a Fresher at This Government Bank But Not a CEO. Retrieved on 2015 April 15, from http://profit.ndtv.com/news/corporates/article-it- pays-to-be-a-fresher-at-this-government-bank-but-not-a- ceo-754936

  • Viljoen, H. (2012). Human Capital Return-on-Investment (HCROI) in South African Companies listed on the Johannesburg Stock Exchange (JSE). Master of Commerce, University of Stellenbosch: 1-230. Retrieved from ir1.sun.ac.za/ bitstream/handle/10019.1/20047/viljoen_human_2012.pdf?

  • Retrieved from www.rbi.org


Abstract Views: 408

PDF Views: 141




  • Are Public Sector Banks Deploying HR Cost Profitably? Overview of Decade Ending 2013-14

Abstract Views: 408  |  PDF Views: 141

Authors

C. M. A. Rupali S. Gupte
Savitribai Phule Pune University, Pune, India
S. U. Gawade
Sinhagad Institute of Management, Pune, India

Abstract


With the advent of Basel III and other global and internal challenges, Indian banks have to address several issues simultaneously. Capital shoring up, financial inclusion requirements, risk mitigation and NPA issues are some of them. The common underlying factor among all of these is achieving, maintaining, protecting and growing profitability. To ensure sustainable advantage in all areas, it is essential that banks make all efforts to use every resource at their disposal towards this purpose. Huma resource has always been a key factor in success and profitability of banks. It also represents a major part of operating cost. Profitable deployment of HR cost will ensure both operating and financial advantage. Public sector banks in India have faced several challenges with respect to HR cost. The demand for competitive salaries and growth of business has led to substantial rise in HR costs of public sector banks in recent years. However there is a need to see if the costs are being deployed profitably. Profitable deployment of any cost indicates more efficiency in use of resources and hence a move towards better profitability. With the help of the HCROI ratio and statistical techniques, the study tries to find out if they have moved towards more profitable deployment of HR cost in the decade ending 2013-14.

Keywords


Bank Profitability, HCROI, HR Cost, Student's T-Test.

References