Stressed PSUs prevented from increasing staff strength for next three years


Govt to put in capital against this condition, to relieve public-sector banks of their NPA burden.

The rising NPAs in public-sector banks have been a growing concern for both the central government and the central bank.

Considering the delicate condition of the banks, the government has decided to help reduce their burden by infusing capital, against the condition that these banks will not increase their total employee strength for the next three years.

Around eleven banks have signed an MoU with the government for this capital infusion and agreed to the conditionality. These banks include Allahabad Bank, Andhra Bank, Bank of India, Bank of Maharashtra, Central Bank of India, Dena Bank, IDBI Bank, Indian Overseas Bank, UCO Bank, United Bank of India and Union Bank of India.

As per the MoU, these banks are allowed to hire only to fill the gap created by retiring staff members. They cannot increase the total staff strength for the next three years.

Also, the agreement requires these banks to reduce their overall costs by 25 per cent over the next three years, without touching employee benefits. 

Following this announcement, many branches of these banks will be merged or closed.

Many bank employees are unhappy with this turnaround plan of the government. They have got together under the banner of the Bank Employees Federation of India, to express their dissent by writing a letter to the Finance Minister Arun Jaitley, seeking changes in the improvement plan.


  1. Banking job are of professional one. But it is rediculous that they still recruit personnel having knoledge of math,,reasoning and english only in PT. In main exam very little waitage is given for banking and economics knowledge. How the policy maker think that these employee will understand and appreciate banking products,its legal implication and customers need and concern for the product at the time of manufacturing and delivery of product as well as during maintenence of assets without any professional knowledge. Grooming generalist at Banks cost is niether cost effective nor work efficeint. This is why Khandelwal committee had recomended Greduation andDBF as min.qualification for officer post. But The BankingKarndhar didnot accepted it.This is one of the reason for poor assets quality and poor level of customer sevice in most of the PSBs.God save these banks!

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