While the total number of PSB employees has been declining over the years, the count of those in officer’s grade has increased from 386,000 in March 2020 to 397,000 in March 2023.
Private sector banks are quickly closing the gap with their public sector counterparts when it comes to employee numbers, according to data from the Reserve Bank of India (RBI). As of March 2023, private sector banks had a workforce of 745,000 employees, just a few thousand short of the 756,000 reported by public sector banks (PSBs).
RBI’s data reveals that private lenders have been expanding their talent pool at a rapid pace, in line with their network expansion and asset base growth. In contrast, PSBs have seen a gradual reduction in their employee base, primarily due to retirements and some attrition. Interestingly, PSBs have been actively recruiting to replace retiring staff and fill new roles in areas such as risk management, analytics, IT, and digital functions.
If current trends persist in the 2023-2024 financial year, private sector banks may even surpass PSBs in terms of employee headcount.
On the other hand, small finance banks (SFBs) have been on a hiring spree. Over the past five years, their employee tally has grown more than threefold, from 38,198 in March 2018 to 134,000 as of March 2023. This shift in the banking landscape highlights the evolving dynamics of the financial sector in India.
PSB shift
Furthermore, there is a noticeable shift in the profile of employees being added to PSBs. While the total number of PSB employees has been declining over the years, the count of those in officer’s grade has increased from 386,000 in March 2020 to 397,000 in March 2023. However, the number of clerical staff has decreased from 277,000 in March 2020 to 257,000 in March 2023.
