Impact of Intellectual Capital on the financial performance of Indian Public Sector Bank : With a Special reference of Bank of Baroda
Tarit Kanti Sen, Prof. Manas Chakrabarti
Intellectual Capital, Value Added Intellectual Coefficient, Growth Rate in Revenue, Indian Banking sector, Value Added, Structural Values Added, Value added Human capital, Capital employed value added.
It is well accepted now a days that the knowledge base economy started from the end of 20th century has significantly different from the industrial economic pervious to the mid 20th century. Economist belief that intangible assets play a essential role as a determinate of value creation in business organization. Since accounting principal standard does not allow fully recognize and disclose of firm’s acquired or internally produced wide range of intangibles assets. Many researchers, academic and professional have studied in recent year that management , investment and credit decision have been made on the basis of financial statement which do not reflect the intangible determinants of corporate value and as a result a significant economic losses for both firm and their supplier of goods, capital or services. The attached study attempts to throw light on intellectual capital performance of banking sector and its possible association with business performance. Intellectual capital has also been defined as the difference between firm’s market value and the cost of replacing its assets. Intangibles asset are those things such as experience, knowledge and firm’s organizational learning ability on which normally cannot put any price tag. Intellectual capital is beyond patents, copyright and other form of intellectual property. It is the sum and synergy of a firm’s knowledge, skill, experience, relationships, innovation, process, market presence and community influence. One of the concise definition of intellectual capital has given by Stewart (1997,p 67) as “packaged useful knowledge”. Survey of literature revealed three main components of intellectual capital which is human capital, structural capital and relational capital.
The study required a thorough understanding of intellectual capital of Indian banking sector, this demand a detailed study of annual report during the period from 2009-2013. The study was wholly based on the domestic public sector bank foe a period of five years from 2009 to 2013.In this study Ante Pulic’s Value Added intellectual Coefficient (VAIC) was used to measured the intellectual capital performance while growth rate in revenue (GR) was use as a financial performance ind