The hiring priorities of public sector banks are undergoing a structural shift with graduate apprentices emerging as a low-cost workforce, partly substituting the much-coveted regular clerical positions.

Data on recent recruitment trends show that banks are increasingly using apprentices to meet manpower requirements arising from the expansion of marketing, customer outreach and digital banking operations, resulting in substantial cost savings.

While apprenticeship has traditionally been associated with public sector undertakings, the model is now gaining significant traction in the banking sector. Of late, several public sector banks have stepped up hiring of apprentices.

“The apprenticeship model has now become an important workforce strategy in the banking sector as a win-win situation for banks as well as job-seekers,’’ Srinath Gattu, Zonal Head-South, BFSI Sector Skill Council (BFSI SSC), the nodal agency for recruitment of apprentices, told businessline.

“For graduates, it offers hands-on experience, industry exposure and role-based learning, thereby improving employability. For banks, it reduces pressure on existing staff and bridges workforce gaps until permanent recruitment is completed,” he said.

The State Bank of India and Union Bank of India are now recruiting 7150 and 1,800 apprentices, respectively. Others, including Bank of Baroda, Punjab National Bank, Central Bank of India, Union Bank of India, Indian Overseas Bank, UCO Bank and Bank of India, are also deploying apprentices in ground operations, customer service, credit processing, collections, branch support and digital banking functions.

Monthly stipend

Apprentices are paid a monthly stipend ranging between ₹15,000 and ₹20,000, depending on the place of posting — metros, Tier-I or Tier-II cities.

Of this, about ₹4,500 per month is reimbursed to banks by the Centre. In contrast, a newly recruited clerk in a public sector bank, draws an initial monthly salary of over ₹40,000, apart from allowances, medical benefits and retirement-linked benefits.

A senior SBI official said apprentice hiring had enabled significant cost optimisation, while adding that the bank had not discontinued recruitment for clerical and probationary officer positions. “It is designed primarily for fresh and unemployed graduates as a strategic entry point into a banking career,’’ he added.

CS Vepa, former Director of the National School of Banking, Hyderabad, and current Director of Vepa Academy, said SBI already provides weightage to apprentices during recruitment for full-time positions. “Other banks should also extend similar weightage to apprentices,” he said.

Notwithstanding the impact of apprenticehip model, some job-seekers are also postive about it. “This is real-time work, and the exposure has made me more confident about pursuing a long-term career in banking,” said MR Mohan, a BCom graduate working as an apprentice with Indian Overseas Bank.

Hiring of Clerks and Apprentices by banks as collated from data of banks, BFSI-SSC

Published on May 20, 2026