PSU banks’ 72 board-level vacancies spark concerns over governance, decision-making

Banks

A significant number of board-level positions remained vacant in the 12 state-owned banks, raising concerns over governance and decision-making in these banks.

According to the Financial Services Institutions Bureau (FSIB) data, at least 72 positions are vacant in 12 state-owned banks, which include positions of managing director and chief executive officer (MD & CEO), executive directors, and non-official director, among others.

Industry experts said a higher number of board-level vacancies may lead to reduced operational efficiency, hamper decision-making, and risk of governance practices.

“The vacant positions at the PSU banks are concerning for the industry. The vacant positions not being filled so far is undemocratic, may lead to concerns over governance practices and hamper best business practices,” said CH Venkatachalam, general secretary, All India Bank Employees’ Association.

The data showed that the Bank of Maharashtra has the highest number of 8 vacant posts, followed by 7 each in Bank of India, Punjab & Sind Bank, and State Bank of India.

Of the total 72 vacant positions, 7 each are vacant since 2014, 2019, and 2025 while 9 and 8 positions are vacant since 2020 and 2024, respectively.

All state-owned banks in the country have workmen employee director and officer employee director positions vacant. Union Bank of India has the MD & CEO position vacant since June 3, 2025.

Venkatachalam added that there is no redundancy at the top posts in the state-owned banks, but the posts are not getting filled by the government. “We are fighting for more recruitments.”

Drop in employee numbers

In the last few financial years, state-owned banks have seen a reduction in employee numbers. This is at a time when the government has asked chief secretaries of all states and Union territories to safeguard bank staff and maintain uninterrupted banking services for the public.

The employee strength of Bank of India declined to 50,564 in FY25, from 50,944 in FY24, and 52,374 in FY23. Similarly, Canara Bank also saw a decline in employee numbers to 81,260 in FY25, from 82,638 in FY24, and 84,978 in FY23, according to the annual reports of these banks.

Bank of Baroda’s headcount declined to 73,742 in FY25, from 74,227 in FY24 and 76,513 in FY23.