SBI is downsizing, replacing branches by e-corners?

SBI Savings Account

Responding to a query by a Member of Parliament (MP), Mr. Anurag Thakur the Minister of State for Finance, said that the Central Government has no plans to downsize SBI or replace its branches by e-corners. Mr. Thakur substantiated his statement by citing information from SBI, which says that there is no plan to downsize its present employee strength of 2.5 lakhs by March 2021, neither does SBI plan to shut down its branches and replace them by e-corners. 

What does the SBI research report say about payrolls in FY20? 

The MP had also sought clarification if the central government plans to cut down payroll creation by 16 lakhs till March 2021. An SBI research report said that, in comparison to the 89.7 lakhs new payrolls created in FY19, it is expected that the creation of the new payroll in FY20 could be lesser by at least 15.8 lakhs. The payroll data was taken from EPFO. 

EPFO only accounts for lower-paid jobs, with a salary cap of Rs. 15,000 per month and doesn’t include central and state government or private sector jobs. The other job data are presented in NPS since 2004. Given the lower growth rate of 5% (SBI 4.6%) of the Indian economy, even the NPS category jobs are expected to be lessened by at least 39,000 in FY20 in comparison to FY19. Thus, FY20 is expected to see a reduction of at least 16 lakhs of new payroll creation. The report also indicated that the Government is not creating new payrolls to fill positions of retiring government employees. 

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