The Bank Employees Federation of India recently revealed a grim statistic: Over 500 bank employees have taken their lives in the past decade due to work-related stress.
Many more bank employees have succumbed to severe mental health issues, while thousands are under treatment for chronic illnesses. Bank trade unions argue that employees are the victims of profit-driven banking policies that leave little room for humaneness.
Banking, once a dream job for thousands of youths in Kerala, is now a different career. Tales of high pressure, monotony, and stress echo across both private and public sector banks.
Until a decade or so ago, a bank job was at the top of young people's career options, second only to the IAS. It was prestigious, well-paying, and highly sought after. Thousands enrolled in coaching centres straight after college for the tough banking exams. But times have changed. The sector, especially private and small finance banks, now has one of the highest attrition rates. According to an RBI report, the attrition rate in private banks stands at a staggering 25%.
Even public-sector banks, once viewed as secure and stable workplaces, witnessing high turnover rates. The reasons? A litany of challenges that have transformed this once-revered profession into one of the most stressful jobs in India.
Bank employees now face a daunting array of problems:
Gone are the days of a 10-to-5 schedule. “I was told I’d work office hours, but now I often start early and stay past evening. Inspections stretch my workday to over 12 hours for days on end,” laments one former employee. “Taking leave is almost impossible since it means overburdening colleagues. I’ve missed out on essential personal commitments and hobbies like drawing because of this routine.”
The spread of private banks and fintech (financial technology) firms has added intense competition. Employees often find themselves juggling client meetings, selling third-party products, and resolving customer complaints long after office hours. Those who excel in this high-pressure environment are usually extroverted, target-driven individuals. For others, the endless demands, sudden target changes, and constant phone calls lead to severe stress and burnout.
Today’s customers, used to instant solutions online, expect the same speed in banking. This has added another layer of pressure on bank staff. In one instance, a customer assaulted a female manager at a Canara Bank branch over a denied loan, while another scuffle between a Union Bank manager and a customer over tax deductions went viral. Such incidents are becoming alarmingly commonplace, especially in public sector banks, where employees often manage overwhelming crowds daily.
As technology evolves, human roles in banking are diminishing. Many tasks are now automated, from loan approvals to record verification. Banks are cutting staff, anticipating a future where machines replace humans entirely. While this streamlines operations, it also leaves employees grappling with job insecurity.
India’s aspiration to become a developed nation by 2040 hinges on the current generation shouldering the weight of change. However, banking—a crucial pillar of the economy—is losing its appeal among the youth. Career consultant Jalish Peter observes a steep decline in interest in bank coaching. "The younger generation sees the stress and the lack of work-life balance and opts out," he notes.
While the banking sector offers competitive salaries and incentives, the toll it takes on the mental and physical health of employees is unimaginable. Unless these systemic issues are addressed, the sector risks losing not just its workforce but its reputation as a desirable career path.
There was a time when banking promised a cushy 10-to-5 office job, but that dream has long faded. The sector has undergone a complete transformation, driven by shifting financial landscapes and cutthroat competition.
One of the biggest shifts in the banking system stems from the dwindling inflow of Gulf money. For years, Kerala’s banks thrived on the savings of expatriate Malayalis working in the Gulf. But those days are over. With Malayalis now migrating to the US and Europe and investing where they live, the cash pipeline to Kerala has significantly dried up.
Banks are acutely aware of this reality, but instead of adapting their strategies, they’re piling immense pressure on employees to bring in business.
Adding fuel to the fire is the fierce competition among banks. Some banks offer savings deposit interest rates as high as 8% to attract customers. When fintech firms and other banks follow suit, the pressure to compete mounts—and employees are caught in the crossfire.
Interestingly, many banking employees are now refusing promotions. Why? More responsibility equals more stress. The higher up you go, the tougher the targets and the greater the pressure to deliver.
“It’s just not worth it,” admits a banker with 20 years of experience. “Even when they get offers of promotion, many employees choose to remain in their current roles because the added stress simply isn’t manageable.”
The banking industry is riddled with contradictions. On the one hand, it offers some of the fastest promotion opportunities and attractive pay scales. For instance, entry-level officers can earn a CTC (cost to company) of up to ₹15 lakh. A promotion to manager, once a 15-year climb, can now be achieved in as little as five years.
But on the other hand, the nature of work has changed drastically. Much of it revolves around marketing and meeting aggressive sales targets. Even though the work is computerised, the work volume has increased exponentially.
“Business has grown fivefold in some places over the last five years, yet staffing levels haven’t changed,” one employee noted. “You can work from 9 am to 10 pm and still not get everything done.”
The numbers tell a grim story: Over the last decade, the banking sector has seen a shortfall of 1.25 lakh workers. The remaining employees are left to shoulder the burden, leading to burnout and frustration.
Bank unions have long raised their voices against these issues, but little has changed. Most recently, the Bank Employees Federation of India organised Rights Day celebrations in November and December to highlight the problems faced by the employees and now plans to launch agitations on January 21.
While the world passionately debates the importance of work-life balance, the banking sector seems to have missed the memo entirely. For most bank employees, the idea of balance between personal and professional life is a distant dream.
Although there’s a fixed time to enter the office, the time to leave is a different story. Imagine leaving at 5 pm after a day’s work—it’s considered “early,” and you may even need special permission for it. Try doing this twice, and it might count as leave. Yet, leaving after 9 pm is never appreciated.
Personal time? Forget about it. Even on leave, employees are bombarded with WhatsApp messages or summoned for meetings. Unrealistic targets add to the burden, ranging from savings accounts and insurance to mutual funds, PMS, and credit cards.
The Reserve Bank of India has already flagged rising attrition rates as a potential threat to the banking sector. In 2023-24, the number of private bank employees surpassed that of public sector banks, but retention remains a challenge. The RBI has suggested better recruitment methods and emphasised the need for improved work environments, career development programmes, mentoring, and training to combat this trend.
Transfers are another ordeal for banking employees. Even as a Scale I officer, you’re required to move branches every three years, shift regions every five years, and relocate to another state after 10 years. Some banks cap this at six years. Promotions or not, after a decade, you’re likely to be posted outside Kerala.
While bank employees are entitled to paid leave, getting it approved is a Herculean task. Sabbaticals for personal pursuits like travelling, writing, or research have become a thing of the past. Today, such breaks are only granted for serious health issues.
Branch managers face extra hardships. For instance, there is a rule that requires branch managers to stay within 30 km of their branch, even on holidays, limiting their ability to travel or unwind.
The relentless demands of the job leave little room for personal life. With mounting workloads, unrealistic expectations, and a lack of meaningful support, work-life balance remains an elusive dream in this sector.
Even in a state like Kerala, where it's hard to find a decent job, very few young people want to get into banking. And, thousands want to get out.
