Banking News
Public Sector Banks Report Surge in Business Per Employee
Public sector banks (PSBs) in India have recorded a notable improvement in Business Per Employee (BPE), highlighting rising productivity and operational efficiency across the sector. The metric, which reflects the total business—comprising deposits and advances—handled per bank employee, has steadily increased over the years. This growth is attributed to better adoption of technology, improved staff training, and increasing use of digital banking platforms, all of which have helped enhance employee output. Experts suggest that the improved BPE is also a result of rationalisation of bank branches and human resources post the major PSB mergers, leading to leaner yet more productive operations. With digital channels handling a majority of routine transactions, employees are now able to focus on high-value services and customer engagement, further boosting per capita business figures. The trend marks a positive transformation in the efficiency benchmarks of public banking institutions.
SBI Hires 13,455 Junior Associates to Boost Customer Service
State Bank of India (SBI) has hired 13,455 junior associates to enhance customer service at its branches, part of a broader recruitment initiative to onboard 18,000 new employees, including 3,000 officers. The new hires are spread across 35 states and Union Territories, making it one of the largest clerical recruitment drives in the banking sector. In a letter to shareholders, SBI Chairman C S Setty said the bank is strengthening its focus on customer experience through real-time tracking tools like Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), and Customer Effort Score (CES). He also highlighted policy changes, such as increasing the claim settlement limit for heirs of deceased depositors from Rs. 5 lakh to Rs. 15 lakh, even with un-probated wills. Despite the recruitment drive, SBI’s total headcount will rise marginally—from 2.32 lakh in March 2024 to 2.36 lakh in March 2025—reflecting digitalisation-led efficiency.
Deposit Insurance Hike Likely Amid New India Co-op Bank Crisis
Following regulatory action against New India Co-operative Bank, discussions have intensified around raising deposit insurance limits in India. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a fully owned subsidiary of the RBI, had a Deposit Insurance Fund of Rs. 1.98 lakh crore at the end of FY24 and settled Rs. 1,436 crore in claims for cooperative bank depositors during the year. Of 1,997 insured banks, 1,857 were cooperative and 140 were commercial. Financial Services Secretary M Nagaraju confirmed in February that a proposal to enhance the insurance limit is under review and will be notified upon Cabinet approval. The RBI had earlier barred New India Co-op Bank from issuing fresh loans and restricted withdrawals for six months, subsequently appointing an administrator. India’s deposit insurance, introduced in 1962 at Rs. 1,500 per depositor, was last revised to Rs. 5 lakh, with only two hikes in the past 45 years.
Centre Urges States to Protect Bank Staff from Threats
The Finance Ministry has urged all state governments to take immediate steps to ensure the safety of bank employees following a series of reports of assault, threats, and disruptions at bank branches. Financial Services Secretary M Nagaraju, in a letter to state chief secretaries, emphasized the critical role banking services play in delivering welfare benefits, supporting small businesses, and enabling daily financial transactions. He cited disturbing social media and news reports of anti-social elements engaging in verbal and physical abuse, disrupting banking operations, and demoralizing staff. The ministry has asked district magistrates and police authorities to provide security at sensitive banking locations, particularly during peak hours, to prevent such incidents. Ensuring a safe environment is essential to maintain public trust and the uninterrupted functioning of the financial ecosystem, especially in rural and semi-urban areas that rely heavily on direct benefit transfers and accessible banking services.
Indian Funds in Swiss Banks Surge Over Threefold to Rs. 37,600 Cr in 2024
Indian deposits in Swiss banks soared more than three times in 2024 to CHF 3.5 billion (around Rs. 37,600 crore), as per data released by the Swiss National Bank (SNB). The sharp spike is largely attributed to an increase in funds held via local branches and other financial entities. Customer deposit accounts of Indian clients, however, rose modestly by 11% to CHF 346 million (Rs. 3,675 crore), accounting for just one-tenth of the total holdings. This growth follows a steep 70% drop in 2023 when Indian deposits hit a four-year low. While 2024 figures are the highest since the 2021 peak of CHF 3.83 billion, they remain below the record CHF 6.5 billion seen in 2006. The SNB clarified that the data excludes black money and funds routed through third-country entities. Separately, the Bank for International Settlements (BIS) reported a 6% rise in Indian deposits, pegging them at $74.8 million (Rs. 650 crore).
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