While there has been a tangible improvement in our relative productivity levels on various parameters such as Operating Expenses Ratio, we still lag behind several of our peers from Asia and the developed world. For instance, in case of Ratio of Operating Cost to Assets, China (0.80%), Malaysia (1.27%) and Korea (1.05%) have much lower ratios as compared to the Indian position of 1.65%.
Considering the fact that we are pursuing the mission of extending access to affordable banking services to the unbanked poor, we need to target a level which is at par, if not better than many of these countries. 23. Our Net Interest Margin at 2.70% is also higher than that observed in many other countries.