From Teller to Stellar: Public Banks Swipe Right on Efficiency

Image Source: Study IQ

India's public sector banks (PSBs) are writing a turnaround narrative in quiet confidence—not only in profitability, but also in performance per capita. Trends in recent years point towards a sharp pick-up in staff productivity, fueled by digital adoption, leaner workforce, and better use of resources.

Performance Pulse

Business Per Employee (BPE) has risen in all large PSBs, indicating improved efficiency in operations.

The BPE of SBI rose to Rs 37.37 crore in FY25 from Rs 34.10 crore in FY24.

Punjab National Bank bettered to Rs 26.86 crore from Rs 23.84 crore, while Bank of Baroda touched Rs 32.53 crore from Rs 29.31 crore.

Efficiency Drivers

Simplification of processes and cost rationalisation have helped banks to do more with less.

Computerized technology and automation are reducing man-hours and improving turnaround times.

Upskilling and training programs are gearing employees to do more advanced, technology-driven jobs.

Workforce Trends

Despite rising productivity, employee headcount is shrinking across most PSBs.

Bank of India staff declined from 52,374 in FY23 to 50,564 in FY25.

Canara Bank's personnel strength dropped from 84,978 to 81,260 during the period.

Bank of Baroda also saw a steady decline of employees.

SBI defied the trend marginally by recalling some employees in FY25 after a decline in FY24.

Branch Growth vs. Staff Cuts

Interestingly, although employee levels fell, branch networks widened.

SBI increased its branches from 22,405 in FY23 to 22,542 in FY24.

This hints at a move towards technology-facilitated branch operations and lean staffing models.

Expert Opinion

The specialists attribute the productivity gain to two primary reasons:

Process improvements and automation of sales and service activities.

A growing economy and growing transaction values, which have the effect of raising business volumes per employee.

However, critics caution against over-optimisation at the cost of customer service or employee welfare.

The Bottom Line The public sector banks are showing how with the right mix of technology, training, and strategic priority, even aging institutions can become lean, high-performing growth drivers. The challenge now is to sustain the momentum without losing the human interface.

Sources: Rediff, Business Standard, CARE Ratings, The Hindu, Moneycontrol, IIBF BankQuest Journal