State Bank of India (SBI), the nation's largest lender, has reportedly decreased its total workforce by 10% since FY19, resulting in 25,000 fewer employees.
What Happened: The state-owned bank’s employee count stood at 2.32 lakh at the end of March, down from 2.57 lakh at the end of FY19, CNBC-TV18 reported, using data compiled from exchange filings. Despite this reduction, SBI maintained one of the lowest attrition rates in the sector at 1.43% for FY24.
On average, SBI has reduced its workforce by 5,000 employees annually since FY19, with the most significant reduction occurring in FY23, where 8,392 positions were cut.
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Profit Upturn: This workforce reduction, combined with increased profitability, has resulted in higher profit per employee. In FY24, SBI reported a profit per employee of ₹26.2 lakh, a significant increase from ₹5.8 lakh in FY20. SBI’s net profit grew at an annualized rate of 44% between FY22 and FY24, reaching ₹61,077 crore.
SBI’s staff expenses rose by 24% in FY24, amounting to ₹71,237 crore. During this fiscal year, the bank also allocated an additional provision of ₹13,387 crore for the 12th bipartite wage revision settlement.
Excluding the one-time wage revision expenses, staff expenses are projected to increase by ₹500 crore per month from FY25 onwards. The management anticipates overheads to range between ₹65,000 crore and ₹70,000 crore for FY25.
"Our employees are recruited from the best talent in the country and are trained to handle the scale, complexity, and compliance requirements of the bank," said SBI Chairman Dinesh Khara following the Q4 results.
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