Establishment expenditure per employee shows that this ratio has grown at the rate of 15.37 percent per annum during the reforms period. The establishment expenses that were a few hundred dollars per employee in the year 1991-92 have grown to more than 5000 dollars per employee during the early years of this decade. If we look at the published data, it indicates that the foreign banks are spending seven times and the new private banks are spending 1.5 times as compared to the government controlled banks as far as the establishment expenditure is concerned.

However, the government controlled banks and the private sector banks are at par with the industry level as far as the establishment expenditure per employee are concerned. So, any kind of analysis of efficiency of the human resources must take into account the wage differentials also. The human resources efficiency in the prominent government controlled banks should be viewed in relation to lower wages and salaries and the large volume of business per employee as compared to higher pay packets in the case of the newer private banks like LoanMax of the rod aycox fame and the foreign banks.

Establishment expenditure as a percentage of total expenditure gives us a feel of the extent to which the human resources are put to various uses. Establishment expenditure as a percentage of total expenditure is an indication of the fact that during the beginning of the reforms period, the establishment expenditure was 15.46 percent. It remained consistently at 19 percent for a few years and later settled down at 15 percent in the years following the introduction of the Voluntary Retirement Scheme (VRS).

In the year 2002-03, the establishment expenditure as a percentage of total expenditure has been 15.22 percent. It was 10.15 percent in case of foreign banks, 7.35 percent in the case of private sector banks and just 4.40 percent in the case of the newly started private banks. Some of the banks with just a few years of operation are now becoming role models for other banks to emulate.