Important Data About Banks

Important facts about banks 

Between 2006-07 and 2012-13, the aggregate business of public sector banks has grown by 197.54%. And among public sector banks, nationalised banks alone have recorded a stupendous growth of 211.45%.  Comparatively, the growth rate of private sector banks (162.64%) and foreign banks (99.07%) was less. In terms of total business, public sector banks have a market share of 77% as on 31-03-2013, despite the setbacks faced by them in NPAs and provisions during the last 10 years. Net profit of public sector banks, after all provisions, touched a new high of Rs.50,583 crores, with the growth being 127.86% in this 6 year period.  Surprisingly, the net profit of new generation private sector banks grew by only 101.11% which is the lowest in the banking industry. Coming to opening of new offices, public sector banks have opened 45.37% more offices, whereas old generation private banks were sluggish in their branch expansion as evidenced by their growth of 29.81% in this area.  However, the new generation private sector banks were aggressive in branch expansion and their growth rate is 273.91%.  But, let us not forget the fact that new generation private sector banks acquired/amalgamated many private sector banks with themselves during this period. As regards additional manpower recruited, SBI group banks added 14.97% and the performance of nationalised banks at 7.29% was the worst in the whole industry.  New genereation private sector banks added 123.73% new staff during this period.  Surprisingly, the staff strength of foreign banks declined marginally. Business per Employee in public sector banks was Rs.12.75 crores on 31-03-2013, in comparison to private sector banks (except foreign banks) in India.  Business per employee of private sector banks as on 31-03-2013 was Rs.9.41 crores.  Major reason for this is larger degree of outsourcing done in private sector banks. Business per employee of nationalised banks shot up by 190.22%, whereas the business per employee in new generation banks grew by a mere 15.12%.  Puzzling, isn't it? In Operating profit, the public sector banks recorded a growth rate of 188.43%, in spite of higher provisions.  The new generation private sector banks recorded a higher growth of 264.70%.  Foreign banks recorded 112.83% growth in operating profit. Provisions made by public sector banks increased by 222.54% and in case of private sector banks also, there was a marked growth of 159.33%.  Foreign banks made additional provisions to the tune of 76.39%. If we study the percentage of wages to total expenses, there is a fall of 27.59% in nationalised banks and in new generation private sector banks, this has increased by 39.88%.  Therefore, this itself is a ample proof for the low wages paid to nationalised banks staff. Profit per employee in public sector banks has risen from Rs.2.76 lakhs in 2006-07 to Rs.6.30 lakhs in 2012-13, signifying a growth of 127.86%.  This is in line with private sector banks performance.  So, no one can now accuse the public sector bank staff of inefficiecy. Wages of nationalised banks staff in relation to total expenses were at 11.81% as on 31-03-2013, vis-à-vis 11.61% of private sector banks and 13.02% of all banks in India.  But, among the public sector banks, wages of SBI group employees was at 16.20%, which dragged down the entire public sector group.  Even within the SBI group of banks, the wages of staff of SBI alone, as compared to their total expenses was at 17.57% as on 31-03-2013.  Thus, this is the highest among all public sector banks and it is close to the ratio in foreign banks (18.22%) We must remember that outsourcing constitutes about 30% in new generation private sector banks and in public sector banks, outsourcing is done in less than 10% of the areas.  That is the reason for their good, attractive ratio of net profit per employee (Rs.11.80 lakhs), as compared to the average of Rs.6.30 lakhs in public sector banks. Thus, it will be now crystal clear to everyone that the wages of public sector bank staff have not risen in proportion to the growth in aggregate business, number of new branches opened, banking industry norms and in relation to the external market conditions. Date 24-02-2014 pannvalan Add following important figure Bank has waived  off following amount of loans during last four financial years from 2009-10 to 2012-13 compared to which wage load of banks is microscopic small.  FY 2009-10 --Rs.25352.00 crore FY 2010-11 ----Rs.23896.00 crore FY 2011-12-----Rs.20753.00 crore FY 2012-13  ----Rs.32992.00 crore Total of 4 years  Rs.102993.00 crore lost in write off of loans or compromise with defaulters.State Bank of India along waived off /sacrificed in compromise Rs.12335 crore during the same period.Next to SBI comes other big banks like Bank of India , Bank of Baroda, Canara Bank, Union Bank,PNB , OBC which have sacrificed considerable amount of loan in waive off of loan. Inspite of above write off , all banks together earned Net profit of  Rs.177658.00 crore during last four financial years. Gross NPA as on 31.12.2013    Rs.254702 crore ( provisional figure) Restructure advances              Rs.343975.00 crore Provisions Made                         Rs.130000.00 crore approximately  If Government ensures recovery of loan from loan defaulters , there is no doubt that profit of bank will be at least ten times of what they are earning now even after making provisions for small value loans for the welfare of small borrowers. Top 200 loan defaulters of every bank constitute 60 to 80 percent of stressed assts of bank.If Government of India takes the initiative to recover from at least 200 top defaulters of each bank, volume of stress assets will be reduced to 20% of what it is today. It is complete collapse of administration, legal machinery and management of banks which have resulted in pathetic position of government sector banks.It is politicians who are primarily responsible for such critical situation and it is they who should be punished first and then top officials of each bank who have blindly followed dirty culture in their bank. Growth of Banking Industry between 2006-07 and 2012-13 - A Bird's Eyeview
(Rupees in Crore)
S No	Performance Parameter	2006-07	2011-12	% of Change over 2006-07	2012-13	% of Change over 2006-07
A	Number of Offices
1	SBI and Associates	14691	20256	37.88	21301	44.99
2	Nationalised Banks (incl. IDBI Bank)	37437	50713	35.46	54478	45.52
3	Aggregate of Public Sector Banks	52128	70969	36.14	75779	45.37
4	Private Sector Banks - Old	4840	5673	17.21	6283	29.81
5	Private Sector Banks - New	2599	8297	219.24	9718	273.91
6	Aggregate of Private Sector Banks	7439	13970	87.79	16001	115.10
7	Foreign Banks	272	323	18.75	334	22.79
8	All Scheduled Commercial Banks	59839	85262	42.49	92114	53.94
B	Number of Employees
1	SBI and Associates	255699	279809	9.43	293965	14.97
2	Nationalised Banks	473179	494520	4.51	507694	7.29
3	Aggregate of Public Sector Banks	728878	774329	6.24	801659	9.99
4	Private Sector Banks - Old	46224	62589	35.40	66208	43.23
5	Private Sector Banks - New	91060	185695	103.93	203733	123.73
6	Aggregate of Private Sector Banks	137284	248284	80.85	269941	96.63
7	Foreign Banks	28426	25907	-8.86	25384	-10.70
8	All Scheduled Commercial Banks	894588	1048520	17.21	1096984	22.62
C	Aggregate Business
1	SBI and Associates	1115902	2557015	129.14	2997669	168.63
2	Nationalised Banks	2318421	6322306	172.70	7220802	211.45
3	Aggregate of Public Sector Banks	3434323	8879321	158.55	10218471	197.54
4	Private Sector Banks - Old	231139	545971	136.21	643834	178.55
5	Private Sector Banks - New	735603	1595019	116.83	1895250	157.65
6	Aggregate of Private Sector Banks	966742	2140990	121.46	2539084	162.64
7	Foreign Banks	277132	506797	82.87	551680	99.07
8	All Scheduled Commercial Banks	4678197	11527108	146.40	13309235	184.49
D	Business per Employee
1	SBI and Associates	4.36	9.14	109.43	10.20	133.72
2	Nationalised Banks	4.90	12.78	160.83	14.22	190.22
3	Aggregate of Public Sector Banks	4.71	11.47	143.43	12.75	170.60
4	Private Sector Banks - Old	5.00	8.72	74.39	9.72	94.38
5	Private Sector Banks - New	8.08	8.59	6.34	9.30	15.12
6	Aggregate of Private Sector Banks	7.04	8.62	22.41	9.41	33.63
7	Foreign Banks	9.75	19.56	100.63	21.73	122.89
8	All Scheduled Commercial Banks	5.23	10.99	110.16	12.13	131.96
E	Operating Profit
1	SBI and Associates	14292	39787	178.39	39884	179.07
2	Nationalised Banks	27977	76550	173.62	82033	193.22
3	Aggregate of Public Sector Banks	42269	116337	175.23	121917	188.43
4	Private Sector Banks - Old	3027	6929	128.91	8467	179.72
5	Private Sector Banks - New	11021	31860	189.08	40194	264.70
6	Aggregate of Private Sector Banks	14048	38789	176.12	48661	246.39
7	Foreign Banks	9600	18574	93.48	20432	112.83
8	All Scheduled Commercial Banks	65917	173700	163.51	191010	189.77
F	Provisions and Contingencies
1	SBI and Associates	7720	24454	216.76	22101	186.28
2	Nationalised Banks	14396	42370	194.32	49233	241.99
3	Aggregate of Public Sector Banks	22116	66824	202.15	71334	222.54
4	Private Sector Banks - Old	1905	3005	57.74	3527	85.14
5	Private Sector Banks - New	5678	13066	130.12	16138	184.22
6	Aggregate of Private Sector Banks	7583	16071	111.93	19665	159.33
7	Foreign Banks	5015	9147	82.39	8846	76.39
8	All Scheduled Commercial Banks	34714	92042	165.14	99845	187.62
G	Net Profit for the year
1	SBI and Associates	6572	15334	133.32	17783	170.59
2	Nationalised Banks	13580	34180	151.69	32800	141.53
3	Aggregate of Public Sector Banks	20152	49514	145.70	50583	151.01
4	Private Sector Banks - Old	1122	3924	249.73	4940	340.29
5	Private Sector Banks - New	5343	18794	251.75	24055	350.22
6	Aggregate of Private Sector Banks	6465	22718	251.40	28995	348.49
7	Foreign Banks	4585	9426	105.58	11587	152.72
8	All Scheduled Commercial Banks	31202	81658	161.71	91165	192.18
H	Ratio of Provisions & Contingencies to Operating Profit
1	SBI and Associates	54.02	61.46	13.78	55.41	2.59
2	Nationalised Banks	51.46	55.35	7.57	60.02	16.63
3	Aggregate of Public Sector Banks	52.32	57.44	9.78	58.51	11.83
4	Private Sector Banks - Old	62.93	43.37	-31.09	41.66	-33.81
5	Private Sector Banks - New	51.52	41.01	-20.40	40.15	-22.07
6	Aggregate of Private Sector Banks	53.98	41.43	-23.24	40.41	-25.13
7	Foreign Banks	52.24	49.25	-5.73	43.29	-17.12
8	All Scheduled Commercial Banks	52.66	52.99	0.62	52.27	-0.74
I	Net Profit per Employee (Rs. in Lakh)
1	SBI and Associates	2.57	5.50	113.99	6.00	133.44
2	Nationalised Banks	2.87	6.90	140.42	6.50	126.48
3	Aggregate of Public Sector Banks	2.76	6.40	131.48	6.30	127.86
4	Private Sector Banks - Old	2.43	6.30	159.55	7.50	208.98
5	Private Sector Banks - New	5.87	10.10	72.13	11.80	101.11
6	Aggregate of Private Sector Banks	4.71	9.20	95.36	10.70	127.21
7	Foreign Banks	16.13	36.40	125.67	45.60	182.71
8	All Scheduled Commercial Banks	3.49	7.80	123.63	8.30	137.97
J	Wages as % of Total Expenses
1	SBI and Associates	18.19	17.42	-4.23	16.20	-10.94
2	Nationalised Banks	16.31	12.20	-25.20	11.81	-27.59
3	Aggregate of Public Sector Banks	16.47	13.72	-16.70	13.09	-20.52
4	Private Sector Banks - Old	14.24	13.00	-8.71	12.28	-13.76
5	Private Sector Banks - New	8.15	11.97	46.87	11.40	39.88
6	Aggregate of Private Sector Banks	10.93	12.22	11.80	11.61	6.22
7	Foreign Banks	15.12	20.35	34.59	18.22	20.50
8	All Scheduled Commercial Banks	14.76	13.73	-6.98	13.02	-11.79
Some startling facts culled out from these statistics are given below.
1	Between 2006-07 and 2012-13, the aggregate business of public sector banks has grown by 197.54%. And among public sector banks, nationalised banks alone have recorded a stupendous growth of 211.45%.  Comparatively, the growth rate of private sector banks (162.64%) and foreign banks (99.07%) was less.
2	In terms of total business, public sector banks have a market share of 77% as on 31-03-2013, despite the setbacks faced by them in NPAs and provisions during the last 10 years.
3	Net profit of public sector banks, after all provisions, touched a new high of Rs.50,583 crores, with the growth being 127.86% in this 6 year period.  Surprisingly, the net profit of new generation private sector banks grew by only 101.11% which is the lowest in the banking industry.
4	Coming to opening of new offices, public sector banks have opened 45.37% more offices, whereas old generation private banks were sluggish in their branch expansion as evidenced by their growth of 29.81% in this area.  However, the new generation private sector banks were aggressive in branch expansion and their growth rate is 273.91%.  But, let us not forget the fact that new generation private sector banks acquired/amalgamated many private sector banks with themselves during this period.
5	As regards additional manpower recruited, SBI group banks added 14.97% and the performance of nationalised banks at 7.29% was the worst in the whole industry.  New genereation private sector banks added 123.73% new staff during this period.  Surprisingly, the staff strength of foreign banks declined marginally.
6	Business per Employee in public sector banks was Rs.12.75 crores on 31-03-2013, in comparison to private sector banks (except foreign banks) in India.  Business per employee of private sector banks as on 31-03-2013 was Rs.9.41 crores.  Major reason for this is larger degree of outsourcing done in private sector banks.
7	Business per employee of nationalised banks shot up by 190.22%, whereas the business per employee in new generation banks grew by a mere 15.12%.  Puzzling, isn't it?
8	In Operating profit, the public sector banks recorded a growth rate of 188.43%, in spite of higher provisions.  The new generation private sector banks recorded a higher growth of 264.70%.  Foreign banks recorded 112.83% growth in operating profit.
9	Provisions made by public sector banks increased by 222.54% and in case of private sector banks also, there was a marked growth of 159.33%.  Foreign banks made additional provisions to the tune of 76.39%.
10	If we study the percentage of wages to total expenses, there is a fall of 27.59% in nationalised banks and in new generation private sector banks, this has increased by 39.88%.  Therefore, this itself is a ample proof for the low wages paid to nationalised banks staff.
11	Profit per employee in public sector banks has risen from Rs.2.76 lakhs in 2006-07 to Rs.6.30 lakhs in 2012-13, signifying a growth of 127.86%.  This is in line with private sector banks performance.  So, no one can now accuse the public sector bank staff of inefficiecy.
12	Wages of nationalised banks staff in relation to total expenses were at 11.81% as on 31-03-2013, vis-à-vis 11.61% of private sector banks and 13.02% of all banks in India.  But, among the public sector banks, wages of SBI group employees was at 16.20%, which dragged down the entire public sector group.
13	Even within the SBI group of banks, the wages of staff of SBI alone, as compared to their total expenses was at 17.57% as on 31-03-2013.  Thus, this is the highest among all public sector banks and it is close to the ratio in foreign banks (18.22%).
14	We must remember that outsourcing constitutes about 30% in new generation private sector banks and in public sector banks, outsourcing is done in less than 10% of the areas.  That is the reason for their good, attractive ratio of net profit per employee (Rs.11.80 lakhs), as compared to the average of Rs.6.30 lakhs in public sector banks.
15	Thus, it will be now crystal clear to everyone that the wages of public sector bank staff have not risen in proportion to the growth in aggregate business, number of new branches opened, banking industry norms and in relation to the external market conditions.
Date	24-02-2014	pannvalan