SBI cuts Employee Strength by 6622

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India's largest lender State Bank of India (SBI) has cut its workforce in the first quarter of fiscal year 2018 by 6,622 people, driven by natural attrition such as retirements and the voluntary retirement scheme, also raising concerns as active digitisation in the banking sector will slow down hiring of the workforce.

It is more likely that layoffs would continue in SBI and employee retirements in 2017-18 financial year will bring down the workforce by 15,460. Other than that, digitalization and merger of associate banks are expected to show its impact on 10,000 employees.

However, the bank said it will redeploy around 10,000 employees from administrative offices and associate banks and assign them to sales functions.

Till 6th of August, SBI has officially merged 594 branches and rationalized 122 administrative offices and that will help the bank to save Rs 1,160 Crores. 

Note : Besides SBI, private sector giants like HDFC and ICICI Banks are also letting their employees to leave the company by pushing the digital payments among customers.

Sources :

• IB Times
• Times of India

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