Private sector banks in India are closing in on public sector banks in terms of employee base. With 745,000 employees, private banks are just a few thousand behind public sector banks, which have 756,000 employees as of March 2023. If the current trend continues, private banks could surpass public sector banks in terms of employee count by March 2024.
Data from the Reserve Bank of India (RBI) shows that private banks have been rapidly expanding their workforce, in line with their growing branch networks and asset bases. In contrast, public sector banks have seen a gradual decline in their employee base, mainly due to retirements and some attrition. This is despite public sector banks hiring new employees to replace those who retire and to fill new roles in risk, analytics, IT, and digital functions.
The profile of new hires at public sector banks is also changing. While the total number of public sector bank employees is declining, the number of officers has increased from 386,000 at the end of March 2020 to 397,000 in March 2023. However, the number of clerical staff has declined from 277,000 in March 2020 to 257,000 in March 2023.
Small finance banks (SFBs) have also been hiring aggressively. The number of SFB employees has more than tripled in the past five years, from 38,198 in March 2018 to 134,000 in March 2023.
In short
- Private sector banks in India are closing in on public sector banks in terms of employee base.
- Private banks are rapidly expanding their workforce, while public sector banks have seen a gradual decline in their employee base.
- The profile of new hires at public sector banks is changing, with more officers being hired and fewer clerical staff.
- Small finance banks have also been hiring aggressively.