Burnout, Suicides & Systemic Failures

Kurian Mathew

India’s banking sector will not thrive on profitability metrics alone. It will succeed only when the people at its heart–its employees–are respected, supported, and heard.

A silent crisis is unfolding in India’s public sector banks (PSBs). It’s not about toxic assets or cyber fraud–but burnout. Behind the counters of these institutions, employees are exhausted, overburdened, and chronically understaffed. Branches that once operated with six or seven staff members are now often reduced to three or four, despite a sharp rise in workload. The result is not only operational stress but a growing human toll.

In recent years, multiple cases of suicides among bank employees have sent shock-waves through the sector. These are not isolated tragedies. They reflect an alarming pattern: an institutional environment marked by neglect, excessive workload, and psychological strain. What began as a management issue has now become a matter of human rights–an instance of systemic violence through institutional apathy.

Public sector banks have been foundational to India’s economic infrastructure. They reach under-served regions, disburse pensions, facilitate crop insurance, support rural entrepreneurs with MUDRA loans, and enable financial inclusion through Jan Dhan accounts. However, while their mandates have expanded, the workforce that carries out these responsibilities has thinned.

A combination of retirements, hiring freezes, and over-reliance on contractual workers has eroded permanent staff strength. Over the last decade, PSBs have experienced a net decline in employee numbers, even as customer accounts have multiplied. Clerks who previously handled 50 transactions a day now process double or more, on top of handling insurance sales, loan applications, KYC compliance, and digital on boarding.

While digital tools have streamlined some processes, they have also raised expectations. Customers now demand speed, accuracy, and 24/7 service. In many branches, one officer is left juggling multiple queues, resolving IT issues, attending compliance calls, handling audits, redressing grievances–and in some cases, even cleaning the floors when support staff are absent.

Once seen as a stable, aspirational career, public sector banking has become a high-pressure environment where many employees feel abandoned. Toxic workloads, lack of support, and indifferent management have eroded morale. Far too often, the human cost is hidden in plain sight.

 Over the past ten years, India has seen more than 500 suicides among bank employees, according to union estimates. In many of these cases, victims cited unbearable stress, unrealistic targets, workplace harassment, or lack of support. On July 17, 2025, a Chief Manager died by suicide–just days before the bank was to celebrate its 118th foundation day. These are not anomalies. They are signals of a deep-rooted structural malaise.

Institutional responses have been troublingly inadequate. Internal inquiries often dismiss allegations of harassment or overwork. There is little accountability for managerial misconduct. Whistle-blowing is discouraged. Union concerns are too often misconstrued as resistance to change rather than legitimate alarms over collapsing employee welfare.

This crisis has also deeply affected morale. Employees are no longer treated as professionals but as disposable instruments of productivity. One day, they are expected to be sales executives; the next, they are expected to be IT trouble-shooters or financial advisors–all without proper training or compensation.

Targets rule everything. Branch managers face relentless pressure to meet sales and recovery benchmarks. Failure invites humiliation, poor performance ratings, or punitive transfers. Even success goes unrecognised. A single procedural misstep can lead to vigilance inquiries, regardless of whether it arose from ambiguous instructions or sheer exhaustion. Many employees now work in fear of being scapegoated for systemic failures.

Burnout under these circumstances is inevitable. Mental health issues–ranging from anxiety and insomnia to clinical depression and post-traumatic stress–are becoming endemic. Yet institutional recognition of this psychological toll is virtually nonexistent. There are no employee help-lines, mental health support systems or functioning grievance redressal mechanisms. The stigma around mental health further discourages many from seeking help.

India cannot afford to let its public sector banking system crumble under the weight of such internal dysfunction. Banks are not just financial intermediaries; they are instruments of social and economic justice. However, this mission cannot be sustained without protecting the dignity and well-being of those who serve it.

Urgent action is needed:
*    Fill critical vacancies: As per a statement by the Union Finance Minister in December 2021, over 41,000 posts were vacant across PSBs. These must be filled, especially at the clerical and officer levels. Contractual appointments are not a long-term solution.
*    Provide mental health support: Establish counseling services, employee help-lines, and internal support mechanisms. Promote a workplace culture that encourages employees to seek help without fear of stigma or reprisal.
*    Align workload with staffing: Staffing norms must be tailored to the size and function of branches. Arbitrary multitasking must be eliminated.
*    Ensure managerial accountability: Create transparent systems to address abuse of power. Disciplinary mechanisms should be impartial, fair, and open.
*    Broaden performance metrics: Move beyond numeric targets. Reward quality of service, compassion, teamwork, and resilience.

The current crisis is not just about numbers; it is about people pushed beyond their limits.

The people behind the counters deserve more than customers’ transactions–they deserve their trust, their attention, and above all, their care.

[Courtesy: Madras Courier]

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Frontier
Vol 58, No. 10, Aug 31 - Sep 6, 2025