42% of Director Positions in 12 PSU Banks Remain Vacant

A significant number of director positions in India’s 12 public sector banks (PSBs) remain vacant, raising concerns over governance and decision-making. According to data presented in the Lok Sabha, nearly 42% of these key positions are unfilled.

The Ministry of Finance acknowledged the vacancies and assured that steps are being taken to fill them at the earliest. However, banks continue to report challenges in maintaining full board strength, affecting strategic and policy-level decision-making.

Bank-Wise Breakdown of Vacant Positions

The extent of vacancies varies across banks, with some institutions facing higher gaps in leadership than others:

The figures indicate that even some of the largest PSBs, such as SBI and PNB, are functioning with incomplete boards, which could impact governance efficiency.

Declining Workforce in Public Sector Banks

The shortage of directors is not the only challenge facing PSBs. Over the past decade, there has been a substantial reduction in their workforce.

• In 2013, PSBs collectively had 3,98,801 clerks, but by 2024, this number had dropped to 2,46,965, a decline of 1,51,835 clerks.
• The number of sub-staff members also reduced from 1,53,628 in 2013 to 94,348 in 2024, a shortfall of 59,280 employees.
• Overall, the total workforce in PSBs decreased from 8,86,490 in 2013 to 7,46,679 in 2024, showing a net loss of 1,39,811 employees.

Conversely, private sector banks have seen an exponential rise in staffing. Between 2013 and 2024, the workforce in private sector banks grew from 2,29,124 to 8,46,530, an increase of 6,17,406 employees.

Planned Bank Strike: A Response to Workforce Concerns

In response to the declining workforce and other unresolved issues, the United Forum of Bank Unions (UFBU) has called for a 2-day strike from March 23 to March 25, 2025.

The UFBU represents over 800,000 employees from public sector, private sector, foreign, co-operative, and regional rural banks. The strike has been backed by several major bank unions, including:

• All India Bank Employees Association
• All India Bank Officers Confederation
• National Confederation of Bank Unions
• Bank Employees Federation of India
• Indian National Bank Officers Congress
• National Organisation of Bank Workers

Key Issues and Demands of the Strike

The strike has been called in response to multiple concerns raised by bank employees:

1. Adequate Recruitment Across All Levels – Unions are demanding increased hiring to compensate for the declining workforce.
2. Regularisation of Temporary Employees – Many contractual and temporary workers are seeking permanent positions.
3. Implementation of a 5-Day Work Week – This demand aligns with global banking industry standards.
4. Withdrawal of Performance-Linked Incentives (PLI) and Performance Review Directives – Employees claim that these measures affect job security and violate the terms of prior agreements.

Implications for the Banking Sector

With a shrinking workforce, high board-level vacancies, and an upcoming strike, public sector banks are at a critical juncture. These developments could affect operational efficiency, customer service, and long-term stability. While the government has acknowledged the issue, the pace of resolution remains a key factor in determining the future of India’s banking sector.

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