SBI likely to reduce workforce by 2019
Merger with six entities to add 70,000 employees from April this year
The total workforce of India’s largest lender — State Bank of India (SBI) — will see a reduction over the next two years, after the merger with six entities, owing to attrition, reduced hiring and digitisation, a top official said.
“Manpower will go down with the period of time. Around 10 per cent reduction in two years may be a possibility,” Rajnish Kumar, SBI Managing Director, said in an interview.
The public lender currently has around 207,000 workforce and the merger of six entities — SBBJ (State Bank of Bikaner and Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State Bank of Hyderabad), Bharatiya Mahila Bank — from April 1 will add approximately 70,000 employees.
“Post-merger we will be at 277,000 people in SBI. This may come down to 260,000 by March 2019. So it may be less than 10 per cent. Let us first merge and see the impact of the key process changes,” Kumar said. He said there would be some actual reduction in headcount along with re-assignment of the roles, but layoffs are not an option.
“We have offered a voluntary retirement scheme (VRS), there would be natural attrition and every year we may not replace head by head (replacement recruitment). Manpower will also reduce as a result of digital initiatives. There will be a combined effect,” he added.
Ruling out layoffs, he said the question does not arise.
Hiring in SBI may not be halted, but will fall by 50 per cent in a year, he said. In 2016-17, SBI hired 19,000 people.
“We cannot stop new hiring because it creates a big gap in middle management down the line. But full replacement may not be required. If 13,000 people retire in a year, we may recruit 7,000-8,000 in a year,” he added.