How Merger of SBI will affect hiring in SBI

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How Merger of SBI will affect hiring in SBI

Dear friends

We have been receiving these queries from past many days. We are here with a complete explanation to actually why merging of subsidiaries with State Bank of India affect new job opportunities in SBI.



Before we begin, Let us put a few details here.

  • SBI Is the largest bank in India with over 15000 branches and over 2.2 Lac employees.
  • SBI has 5 subsidiary banks namely, State bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Mysore, State Bank of Hyderabad and State Bank of Patiala. All these banks are very strong in their area of operation with a combined network of over 7000 branches and more than 1 Lac Employees.
  • After the merger net worth of SBI is estimated to be 37 Billion $ and India will finally have a bank in top 50 banks of the world.





What will happen to the branches of Associate Banks:

In a merger all branches will be converted to State Bank of India branches. State Bank will have collectively 22000 branches across the country. Now at many places already multiple SBI banks are available. At some places 5-6 branches are available at one place. SBI Will move to relocate or merge her branches to save cost depending on the size of branch. We expect ever 2500 branches will be closed/ relocated/ merged in the process.

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What will happen to the staff:

Associate banks were like state based banks, having their huge presence in the state of their origin. After the subsidiaries are merged with SBI, the staff of the associate bank will face all India transfers.

Will their be surplus staff:

If we go by the calculations, yes the answer is yes. After merger we estimate the combined staff strength of SBI to be around 3.25 Lac and no of branches around September 2017 to be 19000. In this case it looks like that SBI will have surplus staff with them.

Will it affect New hiring:

Yes it will probably affect new hiring over the next couple of years. The things will improve because about 40% of the workforce in SBI is scheduled to retire by 2021.

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  • NPA would increase with this, but in a long run say about 3-5 years it will be beneficial. But the bad news is that it would affect the job market to a large extent.

  • MS

    To correct their balance sheet and eliminate NPA, the decision seems perfect. It will balance our economy and if the govt policies will be implemented properly India has the potential to create opportunities in other sectors. Depending just on banking for employment, loan etc is not a good idea. Such activities always create a bulge in one particular sector that is vry harmful of the overall economy

  • Karan Rk

    @sehpaati A huge thanks for explaining this !!! many sites were supporting this mive of SBI by putting up positive note of this merger. but U clearly explained this ..