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Research Article Open Access

An Impact of IT on Branch Productivity of Indian Banking in the Era of Transformation

Abstract

Banking all over the world witnessed changes during last decade, which perhaps it did not see during its entire history. The changes are not only confined to developed countries, banking in developing countries like ours has also witnessed drastic changes. It is due to liberalization of economies and related policies, globalization of world markets especially because of increasing interdependence of different developed and developing countries. In this context of changing environment, the new financial services have been provided with the support of Information Technology such as transfer of funds across and beyond the national boundaries. Financial institutions, including banks, all over the world are, therefore, crucially dependent on information technology and consequently, it has become imperative to evaluate the performance of banking industry. The present paper analyzes the impact of IT on branch productivity and concludes that IT along with other factors, improving the productivity at an excellent rate and fully IT-oriented banks are the most beneficiaries whereas partially IT-oriented banks though proved increase in productivity in the post-ebanking period but still not harmonized with fully IT-oriented banks. The paper also suggests some measures to improve the branch performance along with better utilization of IT.

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