Govt Banks Expand Reach, But Workforce Keeps Shrinking

Most public sector banks (PSBs) in India have cut staff numbers over the past three years. For example, Bank of India’s workforce dropped from 52,374 in FY23 to 50,564 in FY25. Canara Bank fell from 84,978 to 81,260, and UCO Bank from 21,698 to 21,049 over the same period.

Bank of Baroda also saw a steady slide — from 76,513 to 73,742 employees .

Govt Banks Branch Expansion Contrasts Staffing Cuts

Despite fewer employees, govt banks are expanding their branch networks. SBI grew branches from 22,405 in FY23 to 22,937 in FY25. PNB increased from 10,076 to 10,189 UCO, BoI, Canara, and BoB also added branches; Bank of Maharashtra added over 400.

Unions Warn of Staff Overload

Bank unions like AIBEA and AIBOC have flagged serious concerns. They say branches are running with just two or three staffers, leading to longer wait times and stressed employees.

Safety Risks on the Rise

Reports of verbal abuse and physical assault against bank staff have increased. The finance ministry has asked state governments to ensure local police presence at branches and respond swiftly to complaints.

Productivity Gains, But at What Cost?

PSBs report improved business per employee figures—SBI’s BPE rose from ₹34.10 crore to ₹37.37 crore, PNB’s from ₹23.84 crore to ₹26.86 crore, and BoB’s from ₹29.31 crore to ₹32.53 crore. Yet, critics argue this comes at the cost of service quality and employee welfare.

Bottom Line: Balancing Growth with Staff Welfare

The simultaneous decline in govt banks staff and rise in branches exposes a critical need for balance. PSBs must:

• Increase hiring, particularly clerical staff
• Strengthen employee protection policies
• Consider workload and workplace safety

Commuters and customers should expect longer service times until staffing improves. Effective intervention could help PSBs safeguard both customer trust and their core workforce.