To bring about cost-efficiencies, the bank like others in the domain has made an announcement to cut the workforce strength and says that by the end of the FY18, the staff strength will be lower in comparison to what it was at the beginning of the year.
Annually, the bank spends a huge Rs. 4000 crore on the technological front, not taking into the cost in lieu of ATM expenditure.
The bank reiterates the need for human interface to be always there in the system. But as the technological expense is increasing on a year on year basis and this has to be balanced by the cut down in banking staff.
The largest public run bank is not the first to go about staff strength reduction. The country has seen job cuts across sector and being lost to advances in technology such as adoption of artificial intelligence. In the banking space, chatbots are fast replacing human interface. Earlier in this year in the month of September, Yes bank also reported to reduce its staff by 10% owing to redundancies, poor performance and due to technological reasons.