Pvt Vs Govt Banks: For the first time in 53 years, government banks lag behind private banks in this matter

Pvt Vs Govt Banks: 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 independence of the country and during this time 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 for the first time in the last 53 years, private banks have overtaken public sector banks in terms of employees.

Impact of increasing debt burden

According to a Mint news According to this, 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.

Once upon a time there was 85 percent stake

Before moving forward, let us tell you that in the year 1969, about 22 years after independence, India saw a huge 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. From March 2013 to March 2022, the employee base of public sector banks decreased by 13 percent, while in the case of private banks, on the other hand, it increased by 2.4 times. 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 government banks. See how it has shifted in this chart…

fiscal year Employees of public sector banks Employees of private banks
2005-06 724289 175835
2006-07 715695 183712
2007-08 664768 174001
2008-09 685620 183792
2009-10 727775 198253
2010-11 775688 275197
2011-12 867399 307750
2012-13 886490 334241
2013-14 842813 411142
2014-15 859692 431850
2015-16 827283 473651
2016-17 826840 523051
2017-18 807448 573013
2018-19 808400 646555
2019-20 770409 764788
2020-21 770800 791721
2021-22 770812 790926
(Source: RBI)

Changes happening now

Mint report 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 number of employees of small finance banks has tripled.

Technology has reduced their need

Government 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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