The biggest of the constraint has been the legacy of staffing that the public sector banks face. Indian banks employ about 1 million people, three-fourths of which are in public sector banks. It is estimated that about 55 per cent employees would be retiring in the next decade.
This provides a defining moment for these banks to transform by hiring the right talent, right-skilling its workforce and bring about a cultural transformation in the functioning of the banks. There is an opportunity for business process reengineering on the back of manpower transformation. It can bring in a change in management as well as work ethos.