As a result of increased operational efficiency and staff productivity, public sector banks' (PSBs') Business Per staff (BPE) has improved dramatically over time.
Based on data gathered by Business Standard from the most recent PSB annual reports, the BPE of State Bank of India (SBI) increased from Rs.34.10 crore in FY24 to Rs.37.37 crore in 2024-25 (FY25), that of Punjab National Bank (PNB) increased from Rs.23.84 crore to Rs.26.86 crore, and that of Bank of Baroda (BoB) increased from Rs.29.31 crore to Rs.32.53 crore.
A stronger basis for long-term growth and profitability is indicated by the rise in BPE, which shows that each employee is producing more business than previously due to cost reduction, digital adoption, and improved resource use.
This growth can be attributed to two factors. First, the banks have been using technology, digitalization, and training as interventions to improve procedures, including sales activities. Productivity is steadily increasing as a result. Second, as the economy and per capita income expand overall, so do the underlying transaction sizes, which improves results," stated Sanjay Agarwal, senior director at CARE Ratings Ltd.
The BPE of UCO Bank grew from Rs.20.93 crore in FY24 to Rs.24.35 crore in FY25. Likewise, Canara Bank's BPE increased from Rs.25.97 crore to Rs.29.30 crore in FY25. A year-over-year (Y-o-Y) increase in its BPE from Rs.25.87 crore to Rs.28.21 crore was also reported by Bank of India (BoI).
Aggarwal issued a warning, though, saying that banks must make sure that the rush for more productivity doesn't result in employees expecting an intolerable amount of work or in a greater distance from consumers.
Over time, the majority of PSBs have seen a decrease in their workforce.From 52,374 in FY23 to 50,944 in FY24 and then to 50,564 in FY25, BoI showed a steady reduction. The number of employees at Canara Bank similarly declined, going from 84,978 in FY23 to 82,638 in FY24 and finally to 81,260 in FY25.
At 76,513 in FY23, the BoB headcount gradually decreased to 74,227 in FY24 and 73,742 in FY25. Conversely, SBI, the biggest lender, saw a little increase in overall staff numbers to 236,226 in FY25 following a drop from 235,858 in FY23 to 232,296 in FY24. According to their yearly reports, all PSBs now have more branches.In FY23, SBI had 22,405 branches; in FY24, it had 22,542 branches; and in FY25, it had 22,937 branches.
The Reserve Bank of India has warned that there is an increasing risk of over-automation or erosion of credit evaluation standards as a result of a higher reliance on system-driven processes, especially in areas like top-up loans and unsecured lending.
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