Public Sector Banks Shut Down 2,044 Branches in FY22 due to Mergers and Rationalisation: AIBEA
Moneylife Digital Team / IANS 04 July 2022
Indian government-owned banks saw a reduction of 2,044 branches and about 13,000 employees in 2022 over the previous year, a major bank employees union said in Sunday.
On the other hand, the number of branches of private banks went up by 4,023 to 34,342 branches in 2022 compared to 2021, the All India Bank Employees' Association (AIBEA) said.
Private banks had a staff strength of 534,022 at the end of FY20-21, while, in FY21-22, the number was 357,346 with the staff numbers of several banks not available on their websites, it added.
According to the AIBEA, public sector banks (PSBs) had 88,265 branches at the end of FY20-21 and the number came down to 86,221 in FY21-22.
Incidentally, the number of government-owned bank branches in FY19-20 was 90,520, the AIBEA said in a report.
The staff strength of government banks in FY20-21 was 807,048 and came down to 794,040 in FY21-22, it said, adding that the mergers of government banks in 2020 and the subsequent rationalisation of branches and staff retirements resulted in the reduction in the number of branches and staff.
Public sector banks, till FY20-21, had challenging times due to mounting non-performing assets (NPAs), of which the major share was that of the corporate sector, AIBEA General Secretary CH Venkatachalam said.
He said the worst part is over with the government banks booking impressive accounting and social profits.
"Almost all banks have come out of RBI restrictions on account of Prompt Corrective Actions. Public sector banks have shown this impressive performance amidst uncertainties on account of mergers and privatisation," he said.
As per the AIBEA's report, the 21 government banks did a total business (deposits plus advances) of about Rs181.402trn (trillion) in FY21-22, up from Rs166.087trn in FY20-21.
The net profits of the government banks in FY21-22 went up to Rs689.79bn (billion), against Rs331.77bn in FY20-21.
The 21 PSBs did a total business of Rs95.70trn in FY21-22, up from Rs83.62trn in FY20-21.
In respect of net profits, the private banks in FY21-22 logged Rs946.96bn against Rs692.19bn in FY20-21.
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1 year ago
Feel need to shut down may be 20 K more branches where different PSU banks are located wall to wall... as ther is no difference between one bank and other
1 year ago
In case the closure of the branches is on account of mergers of various Banks in the recent past, then it is okay. For example if a branch of Vijaya Bank gets closed on account of its merger with the a Branch of Bank of Baroda in the same locality, then it is fine. Why should AIBEA have any objection to such rationalization is beyond comprehension.
Kamal Garg
1 year ago
It is rather a bizarre that on the one hand all private banks are increasing their branch presence whereas PSU banks are decreasing.
The solution lies in making each branch profitable and accountable and not to close down the branches.
1 year ago
PSBs should not trail private banks in growth of business, earnings, expansion, and HRD, but even surpass them, given the expansive infrastructure and various facilities they enjoy. All staff members must strive hard to compete with the private banks, by means of good customer service and promptitude. Otherwise, no way out.
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