A Study of Information Technology on Productivity of Selected Public and Private Sector Banks at Bangalore

Abstract

The purpose of the research is to identify the different determinants and latent dimensions of newlineproductivity of banks operating in Bangalore. An analysis of the performance of public and newlineprivate sector banks in terms of productivity has been made by considering 18 variables. The newlinevariables have been classified as productivity variables and functional variables. Further, newlinetheir performance has been analysed for two different time slots, namely, pre IT adoption newlineslot (1995-1996 to 1998-1999) and post IT adoption slot (2006 to 2017). The government of newlineIndia enforced the IT Act 2000 on October 17, 2000, which triggered the computerization of newlinebanks. Information technology has led the banks to become more competitive in the global newlinespace. Advantages like cost reduction for banks, rising transaction numbers for banks and newlinefewer bank visits by customers came to the fore, as a result. newlineThe present research is a comprehensive attempt to analyse the relevance of productivity of newlinethe countryand#8223;s banking sector. The study reckons the public and private sector banks so a newlinecomparison between the two categories can be attempted. Factor analysis has been used to newlinecompute the total productivity factor and the total functional factor within and between the newlinebanks for the two time slots, namely, the pre IT adoption slot and the post IT adoption newlineslot. F test has been used to analyse the significance of difference in productivity and newlinefunction factors across the banks. Independent sample T-test has been used to ascertain the newlinesignificance of difference between public and private sector banks. But, in the paired sample newlineT-test, the significance of difference between pre and post IT adoption slots has been worked newlineout bank-wise and category-wise. newlineMultiple regression model has been used to analyse how the functional factor influences total newlineproductivity by reckoning the overall time slot, namely, the pre-IT slot and the post-IT slot newlinebetween the two categories of banks. General linear model has been used to explain the newlineimpact of the two functional factors on two productivity factors during the overall period and newlinethe post IT period. newlineThe result of the study reveals that the private sector banks have been more productive than newlinepublic sector banks in the post IT adoption slot. The private sector banks exploited the newlinetechnology better and upgraded their technology faster than the public sector banks. newline