A STUDY OF OPERATIONAL EFFICIENCY OF COMMERCIAL BANKS IN INDIAN FINANCIAL SYSTEM: AT A GLANCE

The Indian banking system consist a major portion in Indian financial system and in its economy. India is considered as best platform for banking operation for its conservatism practices. In this present study we have analysed the operational efficiency of commercial banks in India with objectives of comparative performance different sectors of commercial banks, profitability position of different sector in relation to number of employees and challenges faced by public sector banks in Indian banking scenario. The present study has taken some parameters like labour productivity, branch expansion, profitability ratio etc to analyse the efficiency of different sector banks. The present study is an evident that the internal management and employee efficiency of foreign banks are far better than other sectors of commercial banks. Maximum workers are working with public sector banks due to out-dated technology and improper employee management whereas foreign sector banks which is less in number but using latest technology to render the services to their customers have very less staff. The present study has revealed that business per employee and profit per employee maximum in case of foreign banks during the study period. The present paper shows that public sector banks are lagging behind regarding various financial parameters in comparison with other sector banks. Hence there is a need to consider above listed challenges to bring optimize effective management in public sector banks.