India’s Public Sector Banks (PSB) have recruited over 1.48 lakh employees between FY 2020-21 and FY 2024-25, yet the overall workforce across these institutions has seen minimal net growth.
According to data from the Union Ministry of Finance, the total employee strength across PSBs rose by only about 6,500 during this five-year period—from 9,12,160 in FY21 to 9,18,692 in FY25.
This discrepancy between gross hiring and net workforce expansion has raised questions about staffing adequacy, attrition, and the evolving nature of banking operations.
Attrition Offsets Hiring Gains
The modest increase in total staff numbers is largely attributed to attrition, including retirements, resignations, and unplanned exits.
While banks have actively recruited to fill vacancies, these efforts have primarily served to replace outgoing employees rather than expand the workforce.
As of March 31, 2025, 96% of staff positions are filled against business requirements, with the remaining gap attributed to natural attrition.
This trend reflects a broader shift in workforce dynamics, where hiring is reactive rather than growth-oriented.
Experts suggest that without a strategic plan to increase headcount, especially in customer-facing and operational roles, service quality and efficiency may be impacted—particularly in semi-urban and rural branches.
Digitization and Budget Constraints Reshape Staffing Models at PSB
The stagnation in workforce numbers also coincides with the digitization of banking services and cost rationalization efforts.
Many PSBs have reduced clerical hiring as digital platforms take over routine transactions.
This has led to a streamlining of operations, with fewer staff required for traditional roles.
For instance, while banks like Bank of Maharashtra and Punjab & Sind Bank have modestly increased their workforce, others such as State Bank of India (SBI), Canara Bank, and Bank of Baroda have reported significant declines:
| Bank | FY 2020-21 | FY 2024-25 | Net Change | |
|---|---|---|---|---|
| SBI | 2,46,353 | 2,36,221 | –10,132 | |
| Bank of Baroda | 82,017 | 73,742 | –8,275 | |
| Canara Bank | 88,213 | 81,260 | –6,953 | |
| Indian Bank | 42,601 | 39,778 | –2,823 | |
| Bank of Maharashtra | 12,532 | 14,591 | +2,059 | |
| Punjab & Sind Bank | 8,890 | 10,229 | +1,339 |
These figures highlight a divergent staffing trend, where some banks are expanding cautiously while others are consolidating.
Recruitment Continues, But Challenges Persist
Looking ahead, PSB plans to recruit an additional 48,570 employees in FY 2025-26 to address remaining gaps and support operational needs.
These positions will likely be filled through competitive exams conducted by IBPS, SBI, and other bank-specific boards, covering roles such as Probationary Officers, Clerks, and Specialist Officers.
However, experts caution that unless recruitment is aligned with long-term workforce planning and service delivery goals, the net impact may remain limited.
The challenge lies in balancing technological transformation with human resource adequacy, especially in regions where digital adoption is slower.
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