Workforce Changes - Among the 12 public sector banks, seven experienced a decline in headcount in FY25 compared to the previous year, with State Bank of India (SBI) adding the most employees, totaling a net increase of 3,930 in 2024-25, while Union Bank of India saw the largest decline with a reduction of 1,935 employees [1] Focus on Productivity - Government-run lenders are prioritizing productivity, with the business per employee metric being a key parameter for the government, the largest shareholder of public sector banks [2] - The groundwork for improving productivity at public sector banks has begun to yield results [2] Strategic Hiring and Transformation - Over the past 3-4 years, public sector banks have emphasized sales and revenue generation, hiring senior executives from private banks on three-year contracts to enhance transformation, technology, customer experience, and retention [3] - Notable lateral hiring includes SBI's recruitment of Nitin Chugh as deputy managing director for digital payments and Bank of Baroda's appointment of Ian De Souza as chief financial officer [3] Human Resource Strategies - SBI is engaging a management consultant to develop a five- and ten-year HR strategy aimed at aligning HR policies with performance goals and benchmarking against industry best practices [4] Work Culture Evolution - There has been a notable change in the work culture of public sector banks, with an increased focus on performance-based appraisals, contrasting with past practices where employee motivation was lower [5]