Government Banks Vacancies may decrease this year

The banking sector is currently facing a significant staffing shortage, while India is grappling with high unemployment rates. Each year, hundreds of thousands of candidates eagerly participate in the IBPS examination, hoping to secure a job in the public sector banks. These aspiring candidates dedicate countless hours to studying in order to qualify for the prestigious IBPS PO and Clerk exams. However, an unfortunate piece of news has emerged. Recently, senior executives from public sector banks (PSBs) and industry experts have indicated that the recruitment process for lower-level positions in PSBs is expected to slow down in the upcoming year of 2024-25. The primary reason behind this is the rapid digitalization of basic banking functions.

PSBs have invested in digital methods that have yielded positive results. Basic functions like query handling and collection have been successfully conducted digitally. As a result, there may be a reduced need for aggressive hiring of employees in these roles. PSBs are also looking to expand their digital services by investing in digital products. While some functions may remain offline, the overall focus is on growing digital offerings to meet the evolving needs of customers.

Decline in Employee Count

Data from the Reserve Bank of India (RBI) reveals a year-on-year decrease in the total number of employees in PSBs. In 2013-14, the employee count stood at 8,59,692, which fell to 7,56,644 in 2022-23. On average, PSBs have witnessed a decline of 15,000 to 20,000 employees annually.

The data also highlights a drop in the number of clerical level employees in PSBs over the past few years. For instance, from 2013-14 to 2022-23, the total number of clerks decreased from 3,15,292 to 2,57,771. Similarly, the count of subordinate officers fell from 1,56,218 in 2013-14 to 1,01,555 in 2022-23.

The Need for Additional Jobs in PSBs:

Bankers and bank unions have emphasized the necessity to increase manpower at the clerical level in PSBs due to the mounting pressure at the branch level. PSBs handle a significantly larger number of customers compared to private banks, with an average employee serving 1,000-2,000 customers, while private banks typically handle 400-500 customers per employee.

Rise in Private Sector Bank Employees:

In contrast, private sector banks have experienced a doubling of their employee strength from 2013-14 to 2022-23. The total number of employees in these banks increased from 3,03,856 to 7,45,612. However, the hiring has primarily been at higher pay grades, resulting in a decrease in the number of clerks from 68,031 (10 years earlier) to 23,589 in 2022-23.

In recent months, private banks have also witnessed high attrition levels compared to their public sector counterparts. Reports suggest that several private banks experienced an average attrition rate of 35-40 percent at the junior employee level in 2022-23. Over the last three fiscal years, attrition among the top private banks reached its highest level in FY23.

RBI Governor Shaktikanta Das addressed the issue of high attrition levels in private sector banks. He acknowledged that the central bank is closely monitoring the situation. Das emphasized the importance for every bank to build a core team to manage such challenges. He also noted the changing career outlook of young professionals, highlighting their inclination towards job switching.