For the first time in 53 years, government banks lag behind private banks in this matter

Banking In India: It has been more than 75 years since the country got independence and during this period the Indian banking sector has seen many important changes. The world of banking has also seen the departure of private sector banks along with Bank Nationalisation, and has also witnessed the return of private capital in the banking world. After liberalisation, private banks have made rapid progress. Especially during the last few years, the share of private banks has increased in every case. This is the reason that private banks have left behind government banks for the first time in the last 53 years in terms of employees.

Effect of increasing debt burden

According to a Mint news, during the last eight years, the burden of bad loans on public sector banks has increased. This is the reason that there has been a sharp decline in the market share of public sector banks. The decrease in market share also affected the number of employees on public sector banks. The figures of the Reserve Bank also testify to this fact.

There was once an 85 percent stake

Before moving ahead, let us tell you that after about 22 years of independence i.e. in the year 1969, India saw a big change in the world of banking. The then government decided to nationalize the banks. After this, the government took control of the 14 largest private banks of that time. In this way, according to the total deposits, about 85 percent share of public sector banks has become. One was then and one is now. Although the state-run SBI is still the largest bank in the country, but the state-owned banks have lagged behind in the overall banking sector.

This is how the base got reduced

According to the Reserve Bank data, during March 2013 to March 2022, the employee base of public sector banks has decreased by 13 percent, while on the other hand it has increased by 2.4 times in the case of private banks. This is the reason why the share of public sector bank employees in the banking sector has come down from 73 per cent to 49 per cent during this period. In other words, now 51 percent of the people in the banking sector are working in private banks, while 49 percent of the employees are now working in public sector banks.

See how the number of employees in the banking sector has shifted over the years in this chart…

(स्रोत: आरबीआई)

Such changes are happening now

Mint’s report states that with the changing technology, the banking sector is witnessing new changes. Small finance banks have grown rapidly in the banking sector during the past years. In less than five years, the staff strength of the Small Finance Bank has tripled.

their need has decreased due to technology

Public sector banks are also not unaffected by this change. The ratio of the category of employees in public sector banks is changing. Technology has reduced the need for people to visit bank branches. From March 2013 to March 2022, the number of officers in public sector banks increased by 21 percent, while the number of clerks and sub-staff decreased by 17 percent and 30 percent, respectively.

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