PSBs Workforce Shrinks, Govt Says 96% Staffing Against Business Needs In Place

The total employee strength across India’s public sector banks has seen a marginal but steady decline over the past five years, even as PSBs hired nearly 1.5 lakh new staffers during the same period, government data showed.

According to information provided in the Rajya Sabha, state-owned banks recruited 1.48 lakh employees between 2020-21 (April-March) and 2024-25, with another 48,570 recruitments underway for FY26. However, these hirings haven’t entirely compensated for the attrition caused by retirements, resignations, and other unplanned exits.

As a result, several large banks, including State Bank of India, Canara Bank, and Bank of Baroda have reported a decline in total headcount since FY21. SBI’s employee strength fell from 2.46 lakh in FY21 to 2.36 lakh in FY25, while Canara Bank dropped from 88,213 to 81,260 and Bank of Baroda from 82,017 to 73,742 over the same period.

The government said that despite the attrition, 96% of the staff required based on business needs are currently in place, and the gaps are “attributable to superannuation and other usual factors.”

This has come as experts have raised concerns about understaffing in critical branches, especially in semi-urban and rural areas, impacting customer service and operational efficiency.

In response, the finance ministry said that staffing decisions are decentralised and made by individual bank boards based on their specific business requirements and spread of activities.

Interestingly, a few smaller state-owned banks have increased their staff over the years. For instance, Bank of Maharashtra grew its workforce from 12,532 in FY21 to 14,591 in FY25, and Central Bank of India from 32,340 to 33,081 in the same period.

The upcoming hiring wave of over 48,000 staffers may ease the pressure, but staffing adequacy and service quality are likely to remain key concerns for the government and bank boards alike.