What Bankers Say While PSBs Log Record Profits in Q1 FY26

The Public Sector Banks (PSBs) have posted a record combined net profit of ₹44,218 crore for the First Quarter of Financial Year 2026 (Q1 FY26), marking an 11% increase year-on-year.

Read more on Q1 FY26 results - PSBs Log Record Profits in Q1 FY26; SBI and Smaller Lenders Drive Growth

Concerns of Bankers in PSBs
Several bankers have expressed distress over the following issues:

Staff Shortage
According to many bank unions and also several bankers in the social media, PSBs are grappling with a severe staff shortage at multiple levels. It raises concerns over operational efficiency, customer service quality, and overall workforce well-being.

Read more here on Issues of Staff Shortage in Various Banks

Work Pressure
According to several reports, bankers are facing the critical challenge of rising work pressure and stress among employees, with many pointing to staff shortages as the main cause.

Read more Reports on Various Banks Regarding Work Pressure

Toxic Work Culture - A Growing Concern
Reports indicate a rising concern regarding a toxic work culture prevalent in PSBs. This culture is characterized by excessive work pressure, unrealistic targets, inadequate staffing, lack of recognition, and in some cases, harassment and intimidation from superiors.

Read many Reports on Toxic Work Culture in Various Banks

Transfer Issues
Many affected employees have criticised bank management over its transfer policies, which they say have led to widespread staff grievances.

Read more on The Issues Reported on Transfer Discrepancies

Non-Performing Assets (NPAs)
This is a significant concern, referring to loans where borrowers have failed to make payments for a specified period. High NPAs erode profitability, weaken lending capacity, and raise the risk of defaults and write-offs. While efforts have been made to reduce NPAs, unions and experts claim that NPA continues to pose a major burden on PSBs.

Read more on Concerns Raised on NPAs

Privatisation Threat
Various unions have raised concerns over the privatisation of public sector banks, from legacy institutions like IDBI Bank to Regional Rural Banks (RRBs). They have consistently and strongly opposed the Union Government’s moves, citing risks on multiple fronts.

Read more on Unions' Concerns on Privatisation of Public Sector Banks

Competition from Private and Foreign Banks
Private banks often have an edge in technology, product innovation, and customer service, attracting a segment of the market. This creates challenges for PSBs in customer retention and growth.

Read more on the Challenges the PSBs are Facing with Private Sector Banks


Conclusion
While PSBs reported a record combined net profit, across unions and banks, the concerns have been raised uniformly. Bankers are demanding fresh recruitment as the first step towards addressing these issues.