Page 5 - Banking Finance July 2025

BANK UPDATE

2024 to 2.36 lakh in March 2025-re-
flecting digitalisation-led efficiency.

Deposit Insurance Hike
Likely Amid New India Co-

op Bank Crisis
Ò»©­ Following regulatory action against

New India Co-operative Bank, discus-
sions have intensified around raising
deposit insurance limits in India. The
Deposit Insurance and Credit Guaran-
tee Corporation (DICGC), a fully owned
subsidiary of the RBI, had a Deposit
Insurance Fund of Rs. 1.98 lakh crore
Public Sector Banks Report Surge in Business Per Em- at the end of FY24 and settled Rs.
ployee 1,436 crore in claims for cooperative
Public sector banks (PSBs) in India have recorded a notable improvement in bank depositors during the year.
Business Per Employee (BPE), highlighting rising productivity and operational Of 1,997 insured banks, 1,857 were
efficiency across the sector. The metric, which reflects the total business- cooperative and 140 were commercial.
comprising deposits and advances-handled per bank employee, has steadily Financial Services Secretary M
increased over the years. Nagaraju confirmed that a proposal to
This growth is attributed to better adoption of technology, improved staff enhance the insurance limit is under
training, and increasing use of digital banking platforms, all of which have review and will be notified upon Cabi-
helped enhance employee output. Experts suggest that the improved BPE net approval.
is also a result of rationalisation of bank branches and human resources post The RBI had earlier barred New India
the major PSB mergers, leading to leaner yet more productive operations. Co-op Bank from issuing fresh loans

With digital channels handling a majority of routine transactions, employ- and restricted withdrawals for six
ees are now able to focus on high-value services and customer engagement, months, subsequently appointing an
further boosting per capita business figures. The trend marks a positive administrator. India's deposit insur-
transformation in the efficiency benchmarks of public banking institutions. ance, introduced in 1962 at Rs. 1,500
per depositor, was last revised to Rs. 5
lakh, with only two hikes in the past 45
SBI Hires 13,455 Junior As- In a letter to shareholders, SBI Chair- years.
man C S Setty said the bank is strength-
sociates to Boost Cus- ening its focus on customer experience
tomer Service through real-time tracking tools like Centre Urges States to Pro-
State Bank of India (SBI) has hired Customer Satisfaction Score (CSAT), Net tect Bank Staff from
13,455 junior associates to enhance Promoter Score (NPS), and Customer Threats
Effort Score (CES).
customer service at its branches, part
The Finance Ministry has urged all
of a broader recruitment initiative to He also highlighted policy changes,
onboard 18,000 new employees, in- such as increasing the claim settlement state governments to take immediate
cluding 3,000 officers. The new hires limit for heirs of deceased depositors steps to ensure the safety of bank
are spread across 35 states and Union from Rs. 5 lakh to Rs. 15 lakh, even with employees following a series of reports
Territories, making it one of the larg- un-probated wills. Despite the recruit- of assault, threats, and disruptions at
bank branches.
est clerical recruitment drives in the ment drive, SBI's total headcount will
banking sector. rise marginally-from 2.32 lakh in March Financial Services Secretary M

BANKING FINANCE | JULY | 2025 | 5