Private banks bigger employers than PSBs

In 10 years, private banks added 6 lakh staffers, PSB’s slashed 1.4 lakh employees

Mumbai: In a worrisome development, the overall staff strength of private sector banks almost quadrupled in 10 years, while the public sector banks (PSBs) have notched a sharp reduction in the number of employees during the same period, officials said.

Revealing the data, the United Forum of Bank Unions (UFBU) Convenor Devidas Tuljapurkar claimed that PSBs recorded a considerable short-fall of clerical and sub-staff between 2013-2024 which has severely hit their routine operations.

In 2013, the clerical cadre strength of PSBs stood at 398,801, but it fell by 151,835 to 246,965 in 2024, while the sub-staff numbers dropped by 59,280 – from 153,628 (2013) to 94,348 (2024).

Citing the figures of the total banking staffers, the UFBU said that the PSB staff strength plummeted by 139,811 – from 886,490 (2013) to 746,679 (2024).

In contrast, the private banks' army of employees ballooned from 229,124 (2013) to 846,530 (2024) – or an increase of 617,406 in just a decade.

“This was because the private sector banks expanded by opening branches in many areas, including semi-urban centres. On the other hand, the PSBs have failed to multiply as they are bogged down by non-performing assets and hence shut down many branches,” Tuljapurkar told ‘The Perfect Voice’.

With the stress and strain of the dwindling employee strength at various levels, the UFBU has demanded adequate recruitments on priority to ensure sufficient staffers in all banks’ branches to reduce the workload on existing employees and help provide satisfactory customer services.

Tuljapurkar added that unlike the private banks, the PSB’s are entrusted with implementing many state-central welfare schemes, extending government benefits to the masses but the yawning staff shortages hampers the public service efforts.

Curiously, UFBU leaders claim that many private sector banks’ employees are actually keen to join the PSBs to escape from job uncertainties, steep performance targets, contractual or hire-and-fire policies in some private banks, disparity in pay and other disadvantages.

However, data released by the Centre in Dec. 2024 shows that the number of branches of all banks grew from 117,990 (March 2014) to 160,501 (Sep. 2024), and of these, 100,686 were located in semi-urban or rural areas.

In order to protest against this and other issues affecting the banking sector, the UFBU had called for its first strike action of 2025 (midnight of March 23 to midnight of March 25).

“On Friday, the Centre held talks with us and the Labour Commissioner and sought one month’s time to resolve our grievances. So, we have postponed the strike agitation for now,” Tuljapurkar said.

Besides the staff recruitment for all cadres, the UFBU wants regularization of all temporary workers, implementing a 5-day work week for the banking industry, put a stop to outsourcing of permanent jobs in banks, and ending unfair labour practices in the banking industry.

Bankers seek withdrawal of a recent government directive on performance review and PLI that threatens job security, creates rifts, discriminates among employees and officers plus undermines the autonomy of PSBs.

The bankers also worry about the safety and security of bank officers/staffers against abuses or assaults by unruly public and local politicians, as was witnessed during the implementation of Maharashtra government’s pet scheme ‘Ladki Bahin’ in mid-2024.

The UFBU has asked the government to fill up the vacant posts of Workmen/Officer Directors in the PSBs, resolve the residual issues pending with Indian Banks Association, amend the Gratuity Act to hike the ceiling to Rs. 25-Lakhs, similar to other government employees along with income tax exemption, and not to levy IT on staff welfare benefits or concessions extended to the bankmen.