Key facts
- Public Sector Undertaking (PSU) banks increased their number of branches.
- Employee growth did not keep pace with branch expansion between FY22 and FY26.
- Banks plan to automate processes.
- Banks are expanding digital banking services.
- Banks are deploying AI tools.
Major state-run lenders in India have reported a trend of increasing their branch network while simultaneously experiencing slower employee growth during the period from FY22 to FY26. This development is occurring as these institutions outline strategic plans focused on enhancing operational efficiency through process automation, expanding their digital banking capabilities, and integrating artificial intelligence (AI) tools. The lower employee-to-branch ratios suggest a strategic shift towards leveraging technology to manage operations and customer service, potentially impacting future hiring needs and operational models within the public sector banking space.