Government bank jobs barely grew in 5 years even as PSU bank business surged 56%
India’s banking sector added 2.72 lakh jobs in five years, but public sector banks saw their workforce remain almost unchanged. PSBs increased total business by around 56% during the same period, while private banks accounted for much of the banking sector’s employment growth.
- Sep 26, 2026,
- Updated Sep 26, 2026 5:46 PM IST
The banking sector added 2.72 lakh employees between financial years 2021-22 and 2025-26, but public sector banks accounted for only a small fraction of the increase. During the same period, the total business of public sector banks rose sharply, pointing to a widening gap between business growth and employee headcount.
According to the data, employment across the banking sector increased from 16.43 lakh in FY22 to 19.15 lakh in FY26, an addition of 2.72 lakh employees. However, public sector banks saw their workforce rise only marginally during this period. PSB employee strength stood at 7.60 lakh in FY22 and increased to 7.63 lakh by FY26. This translates into a compound annual growth rate (CAGR) of just 0.10%.
Private sector banks, in contrast, increased their employee base from 6.47 lakh to 8.32 lakh over the same period. Their workforce grew at a CAGR of 6.49%, adding about 1.85 lakh employees.
Banking employment growth: Public vs private sector
| Financial Year | Public Sector Banks | Private Sector Banks | Other Bank Groups | Total Employment |
|---|---|---|---|---|
| 2021-22 | 7.60 lakh | 6.47 lakh | 2.36 lakh | 16.43 lakh |
| 2022-23 | 7.51 lakh | 7.46 lakh | 2.63 lakh | 17.65 lakh |
| 2023-24 | 7.47 lakh | 8.47 lakh | 2.79 lakh | 18.72 lakh |
| 2024-25 | 7.49 lakh | 8.38 lakh | 3.14 lakh | 19.01 lakh |
| 2025-26 | 7.63 lakh | 8.32 lakh | 3.20 lakh | 19.15 lakh |
| CAGR | 0.10% | 6.49% | 7.91% | 3.90% |
Figures in lakh employees.
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Other banking groups, including foreign banks, regional rural banks, small finance banks and payments banks, increased their combined employee strength from 2.36 lakh to 3.20 lakh. Their workforce recorded a CAGR of 7.91%.
PSU bank business rises sharply
The relatively stable PSB workforce comes against substantial growth in the business handled by these banks.
The data shows that total business of public sector banks increased from ₹181.5 lakh crore as of March 31, 2022, to ₹283.3 lakh crore by March 31, 2026. This represents an increase of around 56%.
Total deposits rose from ₹107.2 lakh crore to ₹156.3 lakh crore during the same period, while loans and advances increased from ₹74.3 lakh crore to ₹127 lakh crore.
The figures indicate that PSBs handled a significantly larger balance sheet without a comparable increase in employee numbers.
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Public sector bank business growth
| Financial Parameter | 31.3.2022 | 31.3.2023 | 31.3.2024 | 31.3.2025 | 31.3.2026 |
|---|---|---|---|---|---|
| Total Business (₹ lakh crore) | 181.5 | 203.2 | 226.7 | 251.7 | 283.3 |
| Total Deposits (₹ lakh crore) | 107.2 | 117.1 | 129.0 | 142.0 | 156.3 |
| Loans & Advances (₹ lakh crore) | 74.3 | 86.1 | 97.7 | 109.8 | 127.0 |
| Net Profit (₹ lakh crore) | 0.67 | 1.05 | 1.41 | 1.78 | 1.98 |
| Gross NPAs (%) | 7.3 | 5.0 | 3.5 | 2.6 | 1.9 |
| Capital Adequacy Ratio (%) | 14.6 | 15.5 | 15.6 | 16.1 | 16.6 |
Source: RBI
Profitability and asset quality also improve
The period also saw improvement in key financial indicators of public sector banks.
Net profit increased from ₹0.67 lakh crore in FY22 to ₹1.98 lakh crore in FY26. At the same time, gross non-performing assets (NPAs) declined from 7.3% to 1.9%.
Capital adequacy also strengthened, with the capital adequacy ratio rising from 14.6% in March 2022 to 16.6% in March 2026.
What the employment numbers show
The data highlights a notable shift in the banking employment landscape. While overall banking employment expanded, the increase was driven largely by private banks and other banking groups rather than public sector banks.
For job seekers, this means that the expansion of India's banking industry has not translated proportionately into new positions in government-owned banks. The PSB workforce remained broadly stable even as deposits, loans, profits and total business expanded significantly.
The figures also suggest that productivity, technology adoption, branch operations and workforce utilisation have become increasingly important to how banks manage growth.
DO READ: Are banks open or closed on September 27? Govt move sparks confusion ahead of nationwide strike
The banking sector added 2.72 lakh employees between financial years 2021-22 and 2025-26, but public sector banks accounted for only a small fraction of the increase. During the same period, the total business of public sector banks rose sharply, pointing to a widening gap between business growth and employee headcount.
According to the data, employment across the banking sector increased from 16.43 lakh in FY22 to 19.15 lakh in FY26, an addition of 2.72 lakh employees. However, public sector banks saw their workforce rise only marginally during this period. PSB employee strength stood at 7.60 lakh in FY22 and increased to 7.63 lakh by FY26. This translates into a compound annual growth rate (CAGR) of just 0.10%.
Private sector banks, in contrast, increased their employee base from 6.47 lakh to 8.32 lakh over the same period. Their workforce grew at a CAGR of 6.49%, adding about 1.85 lakh employees.
Banking employment growth: Public vs private sector
| Financial Year | Public Sector Banks | Private Sector Banks | Other Bank Groups | Total Employment |
|---|---|---|---|---|
| 2021-22 | 7.60 lakh | 6.47 lakh | 2.36 lakh | 16.43 lakh |
| 2022-23 | 7.51 lakh | 7.46 lakh | 2.63 lakh | 17.65 lakh |
| 2023-24 | 7.47 lakh | 8.47 lakh | 2.79 lakh | 18.72 lakh |
| 2024-25 | 7.49 lakh | 8.38 lakh | 3.14 lakh | 19.01 lakh |
| 2025-26 | 7.63 lakh | 8.32 lakh | 3.20 lakh | 19.15 lakh |
| CAGR | 0.10% | 6.49% | 7.91% | 3.90% |
Figures in lakh employees.
MUST READ: RBI changes bulk FD rules from October 1: What depositors and banks need to know
Other banking groups, including foreign banks, regional rural banks, small finance banks and payments banks, increased their combined employee strength from 2.36 lakh to 3.20 lakh. Their workforce recorded a CAGR of 7.91%.
PSU bank business rises sharply
The relatively stable PSB workforce comes against substantial growth in the business handled by these banks.
The data shows that total business of public sector banks increased from ₹181.5 lakh crore as of March 31, 2022, to ₹283.3 lakh crore by March 31, 2026. This represents an increase of around 56%.
Total deposits rose from ₹107.2 lakh crore to ₹156.3 lakh crore during the same period, while loans and advances increased from ₹74.3 lakh crore to ₹127 lakh crore.
The figures indicate that PSBs handled a significantly larger balance sheet without a comparable increase in employee numbers.
ALSO READ: RBI repo rate hike on or off? S&P sees 5.5%, Fitch projects 5.75% in 2027
Public sector bank business growth
| Financial Parameter | 31.3.2022 | 31.3.2023 | 31.3.2024 | 31.3.2025 | 31.3.2026 |
|---|---|---|---|---|---|
| Total Business (₹ lakh crore) | 181.5 | 203.2 | 226.7 | 251.7 | 283.3 |
| Total Deposits (₹ lakh crore) | 107.2 | 117.1 | 129.0 | 142.0 | 156.3 |
| Loans & Advances (₹ lakh crore) | 74.3 | 86.1 | 97.7 | 109.8 | 127.0 |
| Net Profit (₹ lakh crore) | 0.67 | 1.05 | 1.41 | 1.78 | 1.98 |
| Gross NPAs (%) | 7.3 | 5.0 | 3.5 | 2.6 | 1.9 |
| Capital Adequacy Ratio (%) | 14.6 | 15.5 | 15.6 | 16.1 | 16.6 |
Source: RBI
Profitability and asset quality also improve
The period also saw improvement in key financial indicators of public sector banks.
Net profit increased from ₹0.67 lakh crore in FY22 to ₹1.98 lakh crore in FY26. At the same time, gross non-performing assets (NPAs) declined from 7.3% to 1.9%.
Capital adequacy also strengthened, with the capital adequacy ratio rising from 14.6% in March 2022 to 16.6% in March 2026.
What the employment numbers show
The data highlights a notable shift in the banking employment landscape. While overall banking employment expanded, the increase was driven largely by private banks and other banking groups rather than public sector banks.
For job seekers, this means that the expansion of India's banking industry has not translated proportionately into new positions in government-owned banks. The PSB workforce remained broadly stable even as deposits, loans, profits and total business expanded significantly.
The figures also suggest that productivity, technology adoption, branch operations and workforce utilisation have become increasingly important to how banks manage growth.
DO READ: Are banks open or closed on September 27? Govt move sparks confusion ahead of nationwide strike