Public sector banks recruitment rises 33% in FY2025-26, Finance Ministry says

Public sector banks recruited 50,552 candidates in FY2025-26, the finance ministry said on Thursday. The figure was 33 per cent higher than the previous year. The ministry said the hiring aimed to meet rising business needs across the banking system. It added that the increase reflected a planned effort to keep staffing adequate.

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The ministry said recruitment had risen steadily in recent years. It reported 30,827 hires in 2023-24. The number then climbed to 37,860 in 2024-25. The ministry said this showed continued year-on-year workforce growth. It also said the approach helped ensure enough staff across PSB offices.

Public sector banks recruitment through IBPS

The ministry said public sector banks recruited staff through the Institute of Banking Personnel Selection, or IBPS. It said the process followed the manpower needs shared by participating banks. The ministry described the system as centralised and standardised. It said this helped keep selection transparent. It also said the method improved efficiency.

The government remained focused on building skilled staff in public sector banks, the ministry said. It said PSBs needed teams that were ready for future roles. The ministry linked staffing to financial inclusion and wider economic activity. It also said PSBs had to respond to the economy’s changing needs. It added that adequate staffing supported these goals.

Public sector banks and NARCL stressed asset resolution

In another statement, the ministry said National Asset Reconstruction Company Limited, or NARCL, supported stressed asset resolution. It said NARCL helped strengthen bank balance sheets. The ministry said NARCL brought together large stressed exposures. It added that resolutions used transparent and market-based methods. It said this improved recovery outcomes and helped lenders unlock value.

As on March 2026, NARCL had acquired 33 borrower entities, the ministry said. It said the aggregate debt exposure was Rs 1,65,862 crore. The ministry also said NARCL joined resolution processes under the Insolvency and Bankruptcy Code. It added that this increased NARCL’s place in the wider resolution ecosystem. It said the work supported balance sheet repair.

Public sector banks link to NARCL recoveries in FY2025-26

The ministry said FY 2025–26 saw faster recoveries by NARCL. It said Rs 4,364 crore was realised during the year. It added that this was about 70 per cent of cumulative recoveries. The ministry said recoveries were made in 23 accounts. It said total recoveries reached Rs 6,345 crore. It added that this was over 48 per cent of acquisition cost.

The ministry said three accounts were fully resolved. It said recoveries in those cases were 148 per cent, 115 per cent and 183 per cent. It added that this showed value maximisation for lenders. The ministry also said further recoveries were underway. It said NARCL kept moving ahead with evaluation and acquisition of more large-value accounts.

The ministry said NARCL was on track for its targeted acquisition of Rs 2 lakh crore. It said this would support capital recycling in the banking system. The ministry added that stronger bank balance sheets could aid sustained credit growth. It said these efforts formed part of the wider work to meet the economy’s evolving needs.

With inputs from PTI