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4.I am not creating a session factory I am using spring IOC framework to get a hibernate template and do hibernate stuff from within the template. and spring docs says that I dont need to take care about session factory or transactions as springhibernatetemplate does that already.
If you are trying to compare JDBC vs Hibernate, you must of course eliminate all extraneous third party products and ensure that tx management , connection pooling, prepared statement caching, etc, are being done in EXACTLY the same way on both sides.
The ONLY kinds of overhead that Hibernate can cause are CPU and memory overhead. (CPU overhead is usually low, memory varies.) If you are seeing lower CPU utilization in the Hibernate solution, then your problem in NOT Hibernate, but rather some other difference in the system.