PSBs increasingly rely on a massive parallel workforce of over one lakh contractual and outsourced workers
Fresh manpower data as of June 30, 2025, reveal that several public sector banks (PSBs) are operating with significant staffing shortages. When measured as a share of total assessed manpower requirements, Central Bank of India emerges as the most understaffed, with 8.64 per cent of sanctioned posts lying vacant. Out of a requirement of 36,544 employees, the bank has 3,156 unfilled positions.
Bank of Baroda follows closely, with 7.9 per cent vacancies — 6,396 posts unfilled out of 81,264 required. The Bank of Maharashtra has 980 vacant positions against its need for 16,439 employees, leaving a six per cent gap.
Indian Bank reports a 5.7 per cent vacancy rate, and Punjab National Bank faces a 4.55 per cent shortfall.
The vacancy ratios highlight uneven staffing patterns across PSBs, with some operating near full strength while others face significant resource gaps. Despite an assessed workforce of over 7.9 lakh employees, PSBs continue to grapple with over 32,000 vacancies across officer, clerk, and sub-staff roles, even as they increasingly rely on a massive parallel workforce of over one lakh contractual and outsourced workers.
Structural shift
Data presented by the Ministry of Finance in the Lok Sabha in August first week reveal that while 96 per cent of the assessed staff positions are currently filled, the persistent under-recruitment coupled with a growing dependence on outsourced manpower led by the State Bank of India, highlights a structural shift in public banking employment.
Out of the 7,91,023 assessed positions in PSBs, 7,58,468 are currently filled, leaving 32,567 posts vacant. These include 17,500 officer posts, 12,861 clerk posts, and 2,206 sub-staff positions.
Among all PSBs, the State Bank of India reports the highest number of overall vacancies at 9,088, followed by Bank of Baroda (6,396), Punjab National Bank (4,898), and Central Bank of India (3,156). Punjab & Sind Bank has the fewest vacancies at 440, while Union Bank of India has 500 vacant posts.
Parallel workforce
The data further reveal that PSBs are increasingly depending on a parallel workforce. A total of 1,01,049 contractual and outsourced workers were employed across 12 major PSBs as of June 30, 2025.
State Bank of India alone employs 64,995 contractual workers, accounting for over 64 per cent of the total contractual staff across all PSBs. This reflects a disproportionate share.
Following SBI, Canara Bank (6,538), Union Bank of India (5,627), and Indian Bank (5,118) report the next highest numbers. Even smaller banks like Punjab & Sind Bank (1,525) and Indian Overseas Bank (1,415) show considerable dependency on contractual staff. UCO Bank, though the smallest in this context, still employs 235 outsourced workers.
This trend points to a systemic informalisation of the public banking workforce, suggesting that in the future, the proportion of full-time employees is likely to decline. Such a shift could reduce the long-term pension obligations of PSBs.
As per the Ministry of Finance, contractual workers are engaged for non-core banking activities such as housekeeping, security, and ATM guarding, according to RBI guidelines on contractual hiring.
Published on August 12, 2025
