The top management of the bank is disturbed about the low operating efficiency of its branches and the unsuitability of absolute profits as a basis for inter-branch performance evaluation. The chief of the O&M department comes up with a formula that develops an index for measuring inter-branch operating efficiency. The formula is claimed to neutralize the locational factors, which, otherwise vitiates comparison of inter-branch profitability. The focus is on the formula's success in neutralizing the factors affecting comparative profitability of the branches.