Productivity in Co-operative Banks – An Operational Framework

Abstract

Productivity as a concept in both manufacturing as well as service industries is a function of inputs and outputs. Banking is a service industry with its product in the form of services. Where a firm’s final output consists of some quantitative commodity, the concept of productivity in relation to that firm is likely to be a relatively simple matter. Even in a single service firm, the concept of productivity would not be a complicated affair so long as some quantitative measurement of the service produced is agreed upon. As a result of the reform process unleashed in the early 1990s, Indian economy has undergone the paradigm shift. Productivity holds the key for growth of Indian Co-operative Banking Industry in the third millennium. It is very necessary that productivity measurement should deserve attention of policy makers and bank management .Keeping this in view, an attempt is made in this paper to examine the parameters that may qualify for selection in defining the idea of productivity in co-operative banks. This paper also covers the analytical tools and techniques, which could be used for measuring the performance of co-operative banks.