India’s Public Sector Banks (PSBs) are set to recruit 48,570 employees during the financial year 2025–26, aiming to address staffing gaps and strengthen operational capacity across the sector. The update was shared by the Ministry of Finance in a written reply to the Rajya Sabha on July 22, 2025.
As per the ministry’s statement, PSBs currently maintain 96% of the required workforce based on existing business needs. The remaining shortfall is primarily due to natural attrition, including retirements and unplanned exits. To bridge this gap, a major recruitment drive is already underway.
Over the past five financial years (FY 2020–2025), PSBs have collectively hired close to 1.49 lakh employees. The recruitment planned for FY 2025–26 is expected to ensure continued service delivery and institutional stability—particularly in rural and semi-urban regions where staffing issues have been more pronounced.
While PSBs are autonomous, board-governed commercial institutions that independently manage staffing in line with their operational needs, the Ministry acknowledged ongoing concerns regarding under-staffing in some banks. Each bank evaluates its manpower requirements based on factors such as branch network, business growth, and projected retirements.
Data presented in Parliament highlighted that major banks like State Bank of India (SBI), Punjab National Bank, Canara Bank, and Bank of Baroda employ the largest share of PSB personnel, with SBI alone employing over 2.36 lakh people as of March 2025. Smaller institutions, including Punjab & Sind Bank and UCO Bank, have also reported either stable or modestly increasing headcounts.
As recruitment efforts progress, the public banking sector is expected to reinforce its human resource base to meet rising customer expectations and support the country’s financial inclusion and economic development goals.
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