Mumbai: A study of 21 large banks in the country has found that foreign banks, led by Citi India, have the highest employee cost and HDFC has the lowest with the state-run lenders getting sandwiched in the middle.
According to the Boston Consulting Group, Citi India leads the pack of salary cost in relation to the asset base with the average cost being a Rs 19 lakh as of last fiscal, followed by StanChart at Rs 13 lakh and HSBC at Rs 12.3 lakh.
At the fourth slot is the mid-sized public sector bank Indian Overseas Bank (IOB) with an average salary cost of Rs 6.5 lakh per employee, thereby making it at the top of the PSBs.
Against this, the largest lender SBI has a notch down at Rs 6.4 lakh per employee while the new-age state-run bank IDBI Bank and Oriental Bank of Commerce cough up Rs 6.3 lakh each on their every employee on an average.
While banking behemoth SBI as over 2 lakh employees as of last fiscal, Citi India has just about 7,500, and the Chennai-based IOB has about 30,000 employees. State Bank employees together generated Rs 1,33,851 crore in revenues with a profit of Rs 11,733 crore in the past fiscal.
Similarly, IOB also has the largest cost to income ratio among these banks at 67 percent, while Citi has one of the lowest at 24 percent, which is topped by HSBC at 23 percent. For SBI, this stands at 51 percent, says the BCG study. The largest private sector lender spends an average of Rs 5.5 lakh on its every employee, while Indian Bank spends Rs 6.2 lakh, BoB (Rs 6 lakh), Axis Bank and Bank of India (Rs 5.8 lakh each), PNB (Rs 5.5 lakh), Canara (Rs 5.1 lakh), UBI (Rs 4.9 lakh), Syndicate Bank, Allahabad Bank and Corporation (Rs 4.8 lakh each), Uco Bank (Rs 4.5 lakh) and Central Bank spends Rs 4.4 lakh each on its employee.
When it comes to cost to income ratio of other banks, Central Bank is at the second slot with 52 percent, followed by Syndicate Bank at 51 percent, HDFC Bank at 49 percent, Uco at 48 percent, BoI (44 percent), BoB (42 percent), Axis and OBC (41 percent each), UBI and IDBI Bank (40 percent each), PNB and Canara (39 percent each), Indian Bank and ICICI Bank (38 percent each) Corp Bank (37 percent), Allahabad Bank (36 percent) and StanChart (30 percent), says the report.
At the fourth slot is the mid-sized public sector bank Indian Overseas Bank (IOB) with an average salary cost of Rs 6.5 lakh per employee, thereby making it at the top of the PSBs.
Against this, the largest lender SBI has a notch down at Rs 6.4 lakh per employee while the new-age state-run bank IDBI Bank and Oriental Bank of Commerce cough up Rs 6.3 lakh each on their every employee on an average.
While banking behemoth SBI as over 2 lakh employees as of last fiscal, Citi India has just about 7,500, and the Chennai-based IOB has about 30,000 employees. State Bank employees together generated Rs 1,33,851 crore in revenues with a profit of Rs 11,733 crore in the past fiscal.
Similarly, IOB also has the largest cost to income ratio among these banks at 67 percent, while Citi has one of the lowest at 24 percent, which is topped by HSBC at 23 percent. For SBI, this stands at 51 percent, says the BCG study. The largest private sector lender spends an average of Rs 5.5 lakh on its every employee, while Indian Bank spends Rs 6.2 lakh, BoB (Rs 6 lakh), Axis Bank and Bank of India (Rs 5.8 lakh each), PNB (Rs 5.5 lakh), Canara (Rs 5.1 lakh), UBI (Rs 4.9 lakh), Syndicate Bank, Allahabad Bank and Corporation (Rs 4.8 lakh each), Uco Bank (Rs 4.5 lakh) and Central Bank spends Rs 4.4 lakh each on its employee.
When it comes to cost to income ratio of other banks, Central Bank is at the second slot with 52 percent, followed by Syndicate Bank at 51 percent, HDFC Bank at 49 percent, Uco at 48 percent, BoI (44 percent), BoB (42 percent), Axis and OBC (41 percent each), UBI and IDBI Bank (40 percent each), PNB and Canara (39 percent each), Indian Bank and ICICI Bank (38 percent each) Corp Bank (37 percent), Allahabad Bank (36 percent) and StanChart (30 percent), says the report.