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Bank Staff decreasing in PSU Banks, Approx 11000 Staff decreased in Banks in FY2024


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In the fiscal year 2024, India’s public sector banks (PSBs) collectively reduced their employee count by 11,154, as revealed by an analysis of eight banks’ annual reports. Notably, State Bank of India (SBI) reported the highest reduction, with 3,562 employees, followed by Bank of Baroda, which saw a reduction of 2,607 employees. The reduction was primarily observed at the associate level, indicating a shift in the workforce composition within PSBs.

The reduction in employee count was particularly prominent at the associate level across various PSBs. For instance, SBI’s associate-level employee count decreased from 94,977 in FY23 to 92,514 in FY24. Similarly, Punjab National Bank witnessed a decline in sub-staff level employees from 23,827 in FY23 to 22,781 in FY24.

Bank executives have indicated that the hiring of associate and low-level positions at PSBs is expected to slow down in the current fiscal year. The focus is shifting towards digital operations for front-end communication, potentially leading to a decrease in hiring for low-level operational roles. This strategic shift is driven by investments in digital methods, which have proven effective in functions such as query handling and collection, reducing the necessity for aggressive hiring in these areas.

Experts in the banking industry have highlighted the evolving landscape, emphasizing the reduced requirement for human resources in certain segments. For instance, in the cash management segment, there is a decreased need for human resources due to the introduction of cash recovery machines and the expansion of ATM networks, particularly in tier 2 and tier 3 cities. This has led to a significant reduction in the number of employees required for deposit and cheque services.

Data from the Reserve Bank of India’s Handbook of Statistics on Indian Economy for 2023 revealed a consistent decline in the total number of employees in PSBs over the past decade. The total headcount decreased from 8,59,692 in 2013-14 to 7,56,644 in 2022-23, with reductions observed across various job categories, including clerks and subordinate officers.

While the reduction in employee count has been a prevailing trend, some banks, such as Bank of Maharashtra, have experienced a rise in their total employee count. Bank unions have emphasized the need to add more jobs at the clerical level, particularly to address the increasing pressure at the branch level. They have underscored the disparity in customer handling capacity between PSBs and private banks, advocating for a balanced approach to workforce management.

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