Public Sector Banks to Hire 50,000 Employees This Fiscal Amid Expansion Push
Driven by business growth and branch-level needs, PSBs plan massive recruitment, including over 21,000 officer roles across India this financial year.
Massive Recruitment Drive Underway in Public Sector Banks
India’s public sector banks (PSBs) are embarking on a large-scale hiring spree in the current financial year, aiming to recruit around 50,000 employees to support their expanding operations and growing customer base. This significant workforce expansion comes in response to the evolving banking landscape and the increasing demand for branch-level services across the country.
According to data gathered from various banks, approximately 21,000 of these positions will be filled at the officer level, while the rest will include clerical and support staff.
SBI Leads the Way with 20,000 New Positions
Among the twelve government-owned banks, State Bank of India (SBI) has emerged as the primary driver of this broad-based recruitment push unfolding across the nation. India’s largest lender is expected to add close to 20,000 employees to its workforce during the financial year, including specialist officer roles and customer service associates.
The recruitment drive is already underway at SBI, which has brought on board 505 Probationary Officers and 13,455 junior associates—strategically placed across 35 states and Union Territories—to strengthen branch-level service and streamline operational efficiency nationwide.
By the end of March 2025, the workforce at SBI had reached 2,36,226 employees, with officers comprising 1,15,066 of the total headcount. The bank continues to maintain a strong focus on employee retention, boasting an attrition rate consistently below 2%, thanks to its employee-centric policies and engagement programs.
Other Public Sector Banks Also Scaling Up Hiring
While SBI takes a lion’s share of this recruitment drive, other major PSBs are also boosting their workforce. Punjab National Bank (PNB), the country’s second-largest state-run lender, has laid out plans to add over 5,500 employees in the current fiscal year.
PNB’s total staff count reached 1,02,746 by the end of March 2025, and the fresh intake is expected to further strengthen the bank’s operational capabilities and customer support.
Central Bank of India, another state-owned financial institution, is set to induct approximately 4,000 new employees this year, further contributing to the collective hiring momentum in the sector.
Focus on Quality Hiring and Cost Efficiency
The recruitment strategy across PSBs is not just focused on numbers but also on quality hiring, aimed at bringing in talent that can align with the evolving digital and service-oriented banking environment. The average cost of hiring per full-time employee during FY 2024–25 was noted at ₹40,440.59, reflecting a commitment to maintaining both affordability and effectiveness in onboarding processes.
Banks are prioritizing hiring in areas that directly impact customer service, branch efficiency, and digital transformation, ensuring that the new workforce is both relevant and future-ready.
Monetising Subsidiary Investments: A Parallel Focus
Alongside hiring, the government is encouraging public sector banks to unlock value from their investments in subsidiaries and joint ventures. The finance ministry has urged banks to consider listing their subsidiaries on stock exchanges once these units reach a certain scale and profitability.
Currently, around 15 subsidiaries and joint ventures owned by PSBs are being considered for initial public offerings (IPOs) or strategic divestments over the medium to long term. This move is aimed at improving return on investment and enhancing capital efficiency within the banking system.
Before moving toward monetisation, banks have been advised to upgrade governance standards, ensure transparent decision-making, and enhance operational efficiency within their subsidiary businesses. Where necessary, banks may also invest further in scaling up these units to prepare them for successful listings.
Final Thoughts
Public sector banks in India are making bold moves to align with growing customer demands, technological changes, and future expansion. With a massive hiring plan targeting 50,000 new employees, these banks are not only strengthening their workforce but also building capacity to serve India’s diverse population more effectively.
At the forefront is SBI, setting an example with strategic hires and industry-leading retention rates. Meanwhile, other key players like PNB and Central Bank of India are following suit with sizable recruitment goals of their own. Together, these initiatives signal a revival of human capital within India’s public banking space, aligning seamlessly with the industry’s fresh momentum toward expansion.
Simultaneously, the government’s push for monetisation of PSB subsidiaries signals a broader strategy of efficiency, transparency, and value creation. By combining smart hiring with capital unlocking, public sector banks are preparing themselves for a stronger and more competitive future in India’s financial ecosystem.
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