Purpose

The purpose of this study is to measure the impact of technology spend on bank profitability focusing on Indian public and private sector commercial banks. The study also assesses the longevity duration of impact for both public and private sector banks. The trade-off is created between the bank’s profitability and technology spent across four identified columns: increase product sales, reduce cost, enhance employee efficiency and optimally use existing resources.

Design/methodology/approach

The metrics of four columns converted to measurable 11 financial alarming indicators and impact is again checked on profitability indicator ROE. The data used for empirical analysis for the study are between the year 2003 and 2019, across 12 public and 15 private banks. The interface between technology spend and profitability is measured using panel vector autoregression (VAR) and panel vector error correction model (VECM) and further the link between 11 financial indicators and profitability measures is established using panel data analysis.

Findings

The study found that there is a mixed effect of technology spent on profitability and performance of Indian banks, where public sector banks were found to be more unstructured over private sector banks. The study advises the optimal technology spend strategies to gain enhanced productivity for banking business which are to name a few – planned technology reserves, customer awareness campaigns for products, robust employee-customer motivation policy and customized technologies aligned to existing infrastructure.

Originality/value

The data was original and extracted from the Reserve bank of India website and respective banks’ annual reports.

中文翻译：

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银行及其技术投资决策是否一致-印度银行的经验

目的

这项研究的目的是衡量技术支出对银行盈利能力的影响，重点是印度的公共和私营部门商业银行。该研究还评估了公共和私人部门银行的影响寿命。折衷是在银行的获利能力与在四个确定的列上花费的技术之间进行权衡的：增加产品销售，降低成本，提高员工效率以及最佳地利用现有资源。

设计/方法/方法

将四列的度量标准转换为可衡量的11个财务警报指标，并再次检查其对获利能力指标ROE的影响。该研究的经验分析数据是在2003年至2019年之间，涉及12家公共银行和15家私人银行。使用面板向量自回归（VAR）和面板向量误差校正模型（VECM）来衡量技术支出与获利能力之间的接口，并使用面板数据分析来建立11个财务指标与获利能力指标之间的联系。

发现

该研究发现，技术投入对印度银行的盈利能力和绩效产生了不同的影响，在这些银行中，公共部门的银行比私营部门的银行更无组织。该研究建议了最佳技术支出策略，以提高银行业务的生产率，其中仅举几例-计划中的技术储备，产品的客户意识运动，强大的员工-客户激励政策以及与现有基础架构保持一致的定制技术。

创意/价值

数据为原始数据，摘自印度储备银行网站和各银行的年度报告。