Bank Jobs Shift in FY25: Private Banks Cut Staff, PSU Hiring Rises

Hiring trends in India’s banking sector changed noticeably in FY25. Data released by the Reserve Bank of India (RBI) shows that private sector banks reduced their workforce, while public sector banks (PSUs) added a small number of employees. Overall employment in the banking system still increased, supported mainly by hiring at small finance banks.

Private Banks Reduce Employee Numbers

Private sector banks reported a decline in staff strength during FY25. The total number of employees at private banks fell to 8,38,150, compared with 8,45,407 in FY24. This reduction reflected a more cautious approach to hiring amid efficiency drives and changing business needs.

A major contributor to the decline was ICICI Bank, which recorded a sharp drop in employee numbers. The bank’s workforce fell to 1,30,957 in FY25 from 1,41,009 in the previous year. This reduction played a significant role in pulling down the overall private bank headcount.

In contrast, HDFC Bank reported a marginal rise in its employee base. Staff strength increased slightly to 2,14,521 from 2,13,527 a year earlier, indicating stable hiring despite broader moderation in the private banking sector.

PSU Banks See Modest Hiring Growth

Public sector banks showed a more stable hiring trend in FY25. The total number of employees at PSU banks rose to 7,57,641, up from 7,56,015 in FY24. Although the increase was limited, it marked a positive shift after a period of restrained recruitment.

State Bank of India (SBI) contributed to this growth, with its employee count increasing to 2,36,226 from 2,32,296 in the previous year. The expansion suggests continued staffing needs in branches and customer service, especially in semi-urban and rural areas.

Small Finance Banks Drive Overall Job Growth

Despite job cuts at private banks, the total number of employees in India’s banking system increased in FY25. The workforce rose to 18.08 lakh, compared with 17.87 lakh a year earlier.

This growth was largely driven by small finance banks (SFBs), which added nearly 16,000 employees during the year. The total workforce at SFBs increased to 1.77 lakh, reflecting their expanding role in retail lending and financial inclusion.

Among SFBs, AU Small Finance Bank emerged as the largest employer with 50,946 staff members. Its workforce expanded significantly following the merger with Fincare Small Finance Bank from April 1, 2024.

What This Means for Job Seekers

The FY25 data highlights a shift in job opportunities within the banking sector. While private banks appear more cautious on hiring, PSU banks and small finance banks are offering relatively better prospects, particularly for roles linked to branch operations and customer outreach.

Read more: Tata Group Stocks Recap 2025: How Did TCS, Trent, Titan, and Other Companies Perform This Year?

Conclusion

Banking jobs in FY25 showed a clear change in direction. Private banks trimmed staff numbers, PSU banks added modestly, and small finance banks became the main source of employment growth. For job seekers, the focus may be shifting away from large private lenders towards public sector and niche banking institutions.

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