The number of employees at PSU banks is steadily declining: Report

According to a data compiled by the daily, PSBs including Bank of India, Canara Bank,Bank of Baroda and Uco Bank witnessed a drop in its employee size, whereas the State Bank of India and Punjab National Bank saw a slight increase in the headcount.

According to the research, Bank of India's workforce decreased from 52,374 in the fiscal year (FY) 2023 to 50,944 in 2024 and then to 50,564 in 2025. The number of employees at Canara Bank similarly declined, going from 84,978 in FY23 to 82,638 in FY24 and 81,260 in FY25. Bank of Baroda also continued to reduce, going from 76,513 in FY23 to 74,227 in FY24 and then even lower to 73,742 in FY25. From 21,698 in FY23 to 21,456 in FY24 and then to 21,049 in FY25, Uco Bank's workforce shrank.

On the other hand, for SBI, which is the largest PSB in India, there was a slight recovery after falling from 235,858 in FY23 to 232,596 in FY24. In FY25, the headcount increased to 236,226, the report stated. Meanwhile, PNB also saw its employee count increase slightly from 102,319 in FY23 to 102,349 in FY24 before slightly falling to 102,316 in FY25.

Concerns have been expressed by a number of bank unions regarding the recent decrease in employee numbers. Bank workers also protested earlier this year in a few towns. They have claimed that having too few employees is affecting both customer service and employee wellbeing. The chief secretaries of states and union territories have allegedly been urged by the finance ministry to raise awareness among bank workers and ensure that the public gets uninterrupted service. This follows social media posts and news stories detailing instances of physical assault, verbal abuse, and threats of violence against bank employees on the property.

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The biggest PSU bank in India, with a large net profit facing peons shortage in its branches

 

Peons have a crucial role in every government agency.  They are responsible for much more than just carrying files, unlike what many people believe.  Peons assist in managing daily paperwork, sending out letters and documents, and maintaining the department's efficiency.  Even minor administrative duties may be postponed in their absence.

 Let's now discuss banks, with a focus on public sector banks.  Peons are an essential component of branch operations here as well.  The fact that peons in banks manage crucial responsibilities pertaining to financial records may surprise you.  According to Reserve Bank of India (RBI) regulations, each financial transaction in a bank creates a voucher or document that must be kept up to date and preserved for a minimum of ten years.

These coupons are quite significant.  The bank is required to disclose the relevant papers in the event that a customer files a complaint or a case is taken to court.  These files are managed by the peons, who also make sure they are well-organized and secure.  How will these crucial documents be handled, then, if peons are not available?

 Remarkably, nobody is discussing the lack of peons, despite the fact that the lack of bank officials and clerks is a hot topic.  A shortage of peons is causing problems for numerous bank offices throughout the nation.  Basic tasks like moving internal documents, cleaning, and handling physical vouchers suffer greatly in their absence.

One of India’s largest public sector banks, Punjab National Bank (PNB), is currently facing a serious staff shortage. The issue is not just about officers and clerks—even peon posts are vacant. Despite the growing workload and the importance of maintaining records, banks are not recruiting peons.

In the quarter that ended in March 2025, Punjab National Bank's net profit climbed 49.28% to Rs 4989.29 crore.  PNB declared a net profit of Rs 18480.29 crore for the entire year.  This is a substantial profit, and the bank can simply expand its workforce to enhance customer service.

• Will it be the branch manager or officer, who already has multiple responsibilities?
• Or should the senior management be held accountable for not hiring enough support staff?

 Numerous public sector bank branches, including PNB, are reportedly operating without Peons.  Branches have employed private contractors to perform Peon's duties on a daily or monthly basis.  The key query, though, is whether financial work can be trusted to a private individual.  Why don't banks hire Peons?

Bank employees’ unions should raise their voice and demand immediate recruitment of peons. Ignoring the shortage now may lead to bigger problems in the future, especially when legal or regulatory bodies ask for documents that the banks fail to produce.

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