SBI cuts staff base by 10,500 in April-Sept; 5,000 to retire by March
THE country’s largest lender State Bank of India (SBI) has reduced its employee base by 10,584 in the 6 months period ended September after its merger in April. It is further expected to go down by 4,876 people by the end of the year ending March 2018. The staff strength has come down to 2,69,219 as on September against 2,79,803 as on March 2017.
From April 1 this year, SBI merged with its 5 associate banks and Bharatiya Mahila Bank. The 5 associate banks of SBI were State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Hyderabad.
Banks have been working consistently working to cut costs. Recently private lender ICICI Bank too reduced its headcount by 1,082 between July and September this year taking total staff strength to 83,058 as of September 30.
SBI, which is among the top 50 banks globally, further expects retirements and redeployment of staff to improve productivity.
Full-year retirements in FY18 are expected to be at 15,460 and SBI expects employee count to further decline by 4,876, as it had targeted in Q1FY18.
However, the bank has also finalised hiring of 2,200 probationary officers in H2FY18.
With the merger, the public sector bank absorbed about 70,000 employees from its five associates and the Bharatiya Mahila Bank.
The banking industry is undergoing a transformational phase with increasing efficiency and productivity aided by the likes of robots, chatbots, artificial intelligence and other technologies that are threatening jobs in the sector.
Calls made to SBI top officials in connection with the headcount reduction were not answered.