Career Counselling

Public Sector Bank Recruitment Trends 2025–26: Opportunities and Challenges for Banking Aspirants

July 28, 2025

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For candidates preparing for banking exams such as SBI PO, IBPS PO, RBI, NABARD, and SEBI, understanding current employment trends in public sector banks (PSBs) is essential. A recent parliamentary question answered by the Finance Minister sheds light on the number of employees, vacancies, and ongoing recruitment efforts across India’s 12 PSBs. In a detailed discussion, Susheel Raghade, a former Reserve Bank of India (RBI) manager, analyzed these figures and what they mean for aspirants. This blog talks in detail about the Public Sector Bank Recruitment Trends that you need to look out for.

The Public Sector Bank Recruitment Trends reveal a mixed picture: while there is a significant recruitment drive with over 48,000 positions being filled in FY 2025–26, the overall employee strength in PSBs has declined in recent years. These Public Sector Bank Recruitment Trends highlight both opportunity and challenges for those aiming to enter the sector

A Recruitment Wave Amid Declining Workforce

Public sector banks currently employ around 7.58 lakh people, down from approximately 7.9 lakh, indicating a reduction of more than 32,000 employees in a few years. Despite this decline, PSBs are actively hiring, with nearly 48,570 vacancies being filled this financial year. Notifications for major exams like SBI PO and IBPS PO have already been released, confirming that large-scale recruitment is underway.

This trend suggests two things:

High Attrition and Retirements: The reduction points to retirements and unplanned exits impacting workforce numbers.

Fresh Talent Influx: Large recruitment drives aim to counterbalance losses and inject new skills into the sector.

For aspirants, this means opportunities remain strong, but there is also a shift in how PSBs are managing their human resources.

Larger vs. Smaller PSBs: A Disparity in Trends

Not all banks are experiencing the same pattern. Big names like State Bank of India (SBI), Bank of Baroda, Bank of India, and Union Bank of India have shown a declining trend in employee strength. In contrast, smaller banks such as Bank of Maharashtra and Punjab & Sind Bank have reported slight growth in their workforce.

This disparity may stem from:

Operational Strategies: Larger banks adopting more automation to streamline processes.

Regional Demand: Smaller banks expanding to cater to underserved areas.

Financial Health: Different capital positions influencing hiring strategies.

For exam candidates, understanding these dynamics is useful not just for job prospects but also for interview discussions where sector trends are often tested.

The Issue of “Unplanned Exits” and Work Pressure

One concerning point highlighted in the parliamentary discussion is the trend of “unplanned exits.” Unlike retirements, these are voluntary resignations by employees, potentially due to high work pressure and demanding sales targets in PSBs.

Banking jobs in the public sector are not purely administrative; they are business-oriented, requiring officers to meet performance benchmarks. This contrasts with many central government roles that do not carry sales pressures. Aspirants must consider whether they are ready for the business focus of banking roles, especially at entry and middle-management levels.

The Coming Impact of AI and Automation

A key insight from the discussion is the long-term effect of AI and advanced automation. Over the next five years, as private and public banks adopt AI-powered systems and agents, the need for manual workforce may decline further. Routine tasks like account servicing, data processing, and even basic credit evaluations are increasingly being automated.

For aspirants, this underscores the importance of:

Reskilling: Building expertise in analytics, risk management, and policy roles less likely to be automated.

Adaptability: Preparing for a dynamic career path that evolves with technology.

Exam Pattern Awareness: SBI/IBPS PO & Banking Recruitment

Most of the upcoming 48,000+ positions will be filled through competitive exams like SBI PO, IBPS PO or even IBPS Clerk, and specialist officer recruitments. These exams follow a familiar pattern:

Prelims:

Reasoning Ability (35–40 questions)

Quantitative Aptitude (35–40 questions)

English Language (30 questions)

Mains:

Reasoning & Computer Aptitude

General/Economy/Banking Awareness

Data Analysis & Interpretation

English Language (Descriptive Essay + Letter)

Stage	Sections Covered	Marks	Duration
Prelims	Reasoning, Quant, English	100	60 mins
Mains	Reasoning, GA, DI, English	200+50 (Descriptive)	180 mins + 30 mins
Interview	Personality & Banking Awareness	50	—

For those targeting RBI/NABARD/SEBI, descriptive papers focusing on policy, economy, and financial analysis are also critical.

Recruitment Outlook for FY 2025–26

The Finance Minister’s data confirms a proactive hiring approach despite workforce reductions. The current cycle of 48,570 vacancies represents one of the largest in recent years, driven by:

Filling retirements and attrition gaps.

Strengthening digital and customer-facing teams.

Preparing PSBs for expansion in MSME and rural banking segments.

For aspirants, the next 12–18 months are crucial, with exam notifications across SBI, IBPS, RBI, and specialist PSB roles already rolling out.

A Proposed Win-Win-Win Plan

Experts have hinted at a forthcoming strategic plan designed to create a win-win-win situation for all stakeholders:

Banks/Government: Efficient workforce and improved service delivery.

Employees: Better work-life balance and career growth.

Customers: Enhanced experience through optimized human and AI-driven service.

Such reforms, if implemented, could reshape the public banking employment ecosystem in the coming years.

Key Takeaways for Aspirants

Active Recruitment: Over 48,000 PSB vacancies make FY 2025–26 a major opportunity.

Declining Workforce: Attrition and AI adoption are reshaping the sector.

Prepare for Pressure: Bank roles carry business and sales targets unlike some other government jobs.

Stay Updated: Tracking employment trends is critical for interviews and exam relevance.

Adapt for the Future: Focus on skills that complement AI and digital banking transformation.

You can check the video above to understand the trend better.

Employee Strength Trend in Public Sector Banks

One of the most important takeaways from the Finance Minister’s reply is the visible decline in PSB workforce over the last three years. Despite upcoming recruitment drives, the numbers show the pressure of retirements and voluntary exits.

Financial Year	Total Employees (12 PSBs)	Net Change
2022–23	~7.90 lakh	—
2023–24	~7.74 lakh	-16,000
2024–25	~7.58 lakh	-16,000

Summing Up

India’s public sector banking system is at a turning point. The combination of high recruitment, workforce reduction, and technological disruption is creating both opportunities and challenges. For aspirants, the key is preparation with awareness—understanding not just the exam syllabus but the larger employment landscape they are entering.

With over 48,000 vacancies, upcoming SBI and IBPS exams, and future changes in banking roles, now is the time to act. A career in PSBs still offers stability, prestige, and growth—but it will also demand adaptability and a willingness to navigate a rapidly evolving sector.

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