TO CNCB-TV18 Analysis reveals that 12 public sector companies, including Coal India, State Bank of India (SBI) and Hindustan Aeronautics Ltd (HAL) have together reduced their headcount by 23,306 people in FY24, after a similar magnitude of reduction in FY23.
The biggest drop in staff was recorded at Coal India, where 4-5% of employees retire each year. The country’s largest coal producer reported a net reduction in its workforce of 10,349 people during the year.
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In FY23, its headcount declined by 9,340. For Coal India, payroll accounts for 48% of its total expenditure and declined by 1% to ₹48,783 crore in FY24 due to reduction in manpower.
“As employee retirements and severances happen, it is inevitable that it will decline,” said Mukesh Agrawal, Chief Financial Officer, Coal India, in the post-Q3 FY24 earnings report.
The trend is visible across all sectors, from banking and manufacturing to energy and minerals. State Bank of India
On the other hand, the number of employees fell by 3,562 in FY24 after witnessing a reduction of 8,392 in FY23.
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In fact, the country’s largest lender has been reducing its total workforce for the past five years. The bank has reduced its workforce by 10% since fiscal 2019, which amounts to 25,000 fewer employees. The number of employees of the state-owned lender was 232,296 as of March 31, 2024, which is the highest among publicly listed state-owned enterprises.
While Coal India has the second highest headcount with around 2.3 lakh, Punjab National Bank (PNB) is third with a total headcount of 1,02,349 as of March 2024.
The data further shows that most state-run lenders, including Bank of Baroda, Canara Bank, Punjab National Bank and Indian Overseas Bank, have reduced their headcount during the financial year.
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However, companies that added employees in FY24 include SBI Life Insurance, Gail India, Life Insurance Corporation of India (LIC) and Bharat Electronics. While SBI Life Insurance added nearly 3,100 employees during the year, others saw their headcount increase by as much as 215.
The top 16 public sector companies together have a market capitalisation of ₹43.7 lakh crore as of Friday’s close, accounting for 61% of the combined market capitalisation of all listed public sector companies.
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