Top 5 PSBs With The Highest Net Profit Per Employee
The banking sector has underperformed the broader indices in the past few weeks thanks to the liquidity tightening measures taken by the RBI. In the banking sector, the PSBs have been impacted the most. However, rather than harping only on the negative side, let us take a look at the 5 PSBs that have the highest net profit per employee.
| Bank Name | Net Profit Per Employee (Rs) | YTD Return (%) |
|---|
| IDBI Bank | 1,228,297.05 | -46.33 |
| Bank of Baroda | 1,039,417.28 | -44.63 |
| Corporation Bank | 901,857.37 | -41.84 |
| Indian Bank | 837,909.91 | -65.24 |
| Andhra Bank | 780,205.29 | -51.23 |
Source: Dion Insight
IDBI Bank: IDBI Bank is the youngest, new generation, public sector bank. It offers personalised banking and financial solutions to its clients. The bank has an aggregate balance sheet size of Rs 322769 crore and a total business of Rs 423423 crore as on March 31, 2013. IDBI Bank's operations during the financial year ended March 31, 2013 resulted in a net profit of Rs 1882 crore.
At Rs 12.28 lakh, the bank has the highest net profit per employee and has secured the top spot in our list. The stock has yielded a negative return of 46.33% on a YTD basis.
Bank of Baroda: Bank of Baroda was founded in 1908 and is headquartered in Vadodara, Gujarat. It provides banking and financial services to individuals, businesses and corporate customers. The company operates 4276 branches in India. As of March 31, 2013, it operates 100 branches in 24 countries internationally. It also operates 2630 ATMs.
The stock of the bank has yielded a negative return of 44.63% on a YTD basis. However, its net profit per employee is one of the highest and stands at Rs 10.39 lakh.
Corporation Bank: Started about 108 years ago in 1906, with an initial capital of just Rs 5000, Corporation Bank has touched the Rs 284722 crore mark in business and far more, with over 6677 service outlets across the nation. Nationalised in 1980, Corporation Bank was the forerunner when it came to evolving and adapting to financial sector reforms. In 1997, it became the second public sector bank in the country to enter the capital market, with its IPO being oversubscribed by 13x.
The net profit per employee per employee for the bank stands at Rs 9 lakh. On a YTD basis, the stock has yielded a negative return of 41.84%.
Indian Bank: Indian Bank offers corporate/wholesale, retail, treasury and other banking services, primarily in India. As of March 31, 2013, it has 2089 branches comprising 568 rural, 586 semi-urban, 534 urban and 401 metropolitan branches, as well as 28 extension counters, 23 satellite offices, 1 collection counter, 52 rural banking service centres and 1 forex bureau. The company also operates 1322 ATMs, 1418 ultra-small branches in villages and 3 foreign branches in Singapore and Sri Lanka (Colombo and Jaffna). Indian Bank was founded in 1907 and is headquartered in Chennai.
On a YTD basis, the stock has yielded a negative return of 65.24%. The net profit per employee, though, is one of the highest at Rs 8.37 lakh.
Andhra Bank: Andhra Bank was founded by eminent freedom fighter Dr Bhogaraju Pattabhi Sitaramayya and is headquartered in Hyderabad. The bank was registered on November 20, 1923 and commenced business with paid-up capital of Rs 1 lakh and authorised capital of Rs 10 lakh. The company operates 1867 branches, 1207 ATMs, 13 extension counters and 38 satellite offices.
The stock prices have yielded a negative return of 51.23% on a YTD basis and the net profit per employee per employee for the bank stands at Rs 7.80 lakh.