SBI’s business per employee lower than industry average

According to RBI report for the year 2008-09 the productivity of the State Bank of India’s employee stood at Rs5.56 crore which is below the estimated industry average of Rs7.50 crore for the year.

While the country’s largest lender’s wages as percentage of total expenses accounted to 16.64% as against the industry average of 13.52% for 2008-09.

As per the RBI report on profile of banks, business per employee (total business of the bank divided by the number of employees) of IDBI Bank stood at Rs20.30 crore and that of Punjab National Bank at Rs6.54 crore.

While the business per employee of Canara Bank stood at Rs7.80 crore, Bank of Baroda at Rs9.14 crore, Bank of India at Rs8.33 crore and Union Bank at Rs6.94 crore for 2008-09.

In comparison to public sector banks, country’s private sector banks have done fairly well with the business per employee of ICICI Bank and Axis Bank being at Rs11.54 crore and Rs10.60 crore, respectively for the last fiscal.

Also the foreign banks’ employee productivity has been higher in comparison to the industry average with Citibank, HSBC, Standard Chartered Bank and Barclays business per employee at Rs18.80 crore, Rs9.61 crore, Rs9.71 crore and Rs11.10 crore, respectively.

ICICI Bank’s profit per employee has been higher at Rs 11 lakh, among the private lenders while the HDFC Bank average has stood below at Rs 4.18 lakh.

SBP announced Festival Bonanza- offers 3 new home loan schemes

There is a competition among the banks of offering best festive offers. The State Bank of Patiala has launched a Festival Bonanza with 3 new Home Loan schemes on liberal terms and conditions. According to bank’s press release the schemes will be applicable from September 1 to November 30, 2009. The release said the schemes have been launched to cater the customer’s need for attaining home loan at affordable rate of interest.

Under HI-Five Home Loan scheme SBP is offering a fixed rate of interest at 8% p.a. for 5 years for the loan of up to Rs.5 lacs. The loan repay back period has been set for 10 years. Under Easy Home Loan scheme SBP is offering a fixed interest rate of 8% p.a during 1st year 8.50% for 2nd and 3rd year. The maximum loan amount under this scheme is Rs.50 lacs and maximum repay back tenure is 25 years.

While under Advantage Home loan scheme SBP is offering 8% p.a interest for 1st year and 9% p.a. for 2nd and 3rd year. The scheme will be offered on above Rs.50 lacs for the period of 25 years. The bank will not charge any pre-payment penalty in case the borrower opts to pre-pay the loan at the time of reset in all variants. Processing fee has also been completely waived off up to 30.11.2009.

SBI see surge in mobile banking customers

More and more customers are opting for mobile banking facility. According to banks data in the last two months there have been increase in the number of customers registering for mobile banking facility. The main reason behind this increase is a steep rise in small-value transactions.

A senior SBI official informed that in the last two months more than 20,000 customers have opted for mobile banking and in the future more are expected to add.

The official told press, "Both customers and bank branches have realized the immense potential of this service, especially when it comes to small value transactions. We have seen more number of customers availing this service in the July-August period."

As on date around 33,000 clients have registered for mobile banking with SBI as against 10,000 in May this year.