PSU Bank Privatisation: Stake Sale, Pressure & Quits | Govt May Sell Stake in 3 PSU Banks
Bank Privatisation News: Govt May Sell Stake in 3 PSU Banks
There is big news related to the privatisation of public sector banks. As per media reports and sources, the Government of India is planning to reduce its stake in three PSU banks through the Offer for Sale (OFS) route in the near future.
According to available information, the government may reduce its stake in:
- Punjab & Sind Bank
- UCO Bank
- Central Bank of India
Among these, the first stake reduction is likely in Punjab & Sind Bank, where the government currently holds around 98.25% stake, which is far above the minimum public shareholding (MPS) norm prescribed by SEBI. After Punjab & Sind Bank, stake dilution may follow in UCO Bank and Central Bank of India.
Recently, the Central Government had already divested up to 2% stake in Indian Overseas Bank (IOB) through an OFS. Soon after, the government also announced plans to sell additional stake in IOB, indicating a clear direction towards gradual stake reduction in PSU banks.
What’s Happening on the Ground: A Follow-Up from Bank Officers
While stake sale news is being discussed at policy and market levels, HelloBankers.com has been in direct conversations with officers from multiple PSU banks, and what we are hearing from the ground tells a much deeper story.
Officers across banks are witnessing a very aggressive shift in management style and a multi-fold increase in work pressure.
We spoke to officers from UCO Bank, posted in zones like Bhagalpur, Salt Lake, Chandigarh, and Karnal. A common theme emerged across locations.
What Officers Are Reporting
- No significant recruitment of officers for years, despite increasing business and compliance load
- Branches turning into daily battlefields, not workplaces
- Leaves being routinely rejected, even for genuine reasons
- Increasing instances of loss of pay threats
- Explanation letters from Vigilance departments becoming routine, not exceptions
Officers say that no one is being spared—from junior officers to branch heads.
A New Trend: Direct Pressure from the Top
A disturbing new trend reported by officers is the increasing frequency of multiple video conferences (VCs) every day.
In many cases:
- General Managers (GMs) from Head Office directly join daily VCs of branch heads of a particular zone along with Regional Managers.
- These sessions often turn into one-way pressure meetings, where branch heads are made to face the direct wrath of top management
Post these meetings, officers are bluntly told:
“Either achieve targets or quit the job.”
On this note, readers are advised to also read our detailed article:
“Why Bankers Are Resigning in Huge Numbers?”
Female Staff Facing the Same Pressure
Female staff members are not receiving any different or softer treatment.
Officers report that:
- Staff who fail to report to branch due to health or personal reasons, or go on leave without approval, are harassed through multiple warning and explanation letters
- The communication is pseudo two-sided, but in reality, it is a one-sided dialogue, with no real listening or empathy
Health & Family Life Taking a Severe Hit
Perhaps the most alarming feedback we received was related to health deterioration.
Officers shared that:
- Due to extreme workload and pressure, mental health symptoms are emerging
- Psychiatrist visits have started entering Sunday schedules, slowly becoming monthly appointments
- This pressure is severely affecting family life, relationships, and personal well-being
Is This Linked to Stake Sale & Privatisation?
Many employees strongly believe that this aggressive performance pressure is not coincidental.
According to them:
- The pressure could be linked to upcoming stake sales and privatisation signals
- Combined with inhuman top-tier management behaviour, the work environment has become unbearable
The work culture across PSU banks has changed drastically over the past few years. What was once considered a stable and respectable PSU job has now become one of the most challenging and stressful roles in the entire PSU sector.
Cost Cutting in UCO Bank: When Staff Welfare Takes a Backseat
There is growing unrest among officers in UCO Bank, and at the centre of it is what many employees describe as unchecked cost-cutting at the cost of staff welfare. Beyond issuing decorative circulars on employee well-being, officers say there is no real emphasis on staff welfare at the ground level.
A statement that is increasingly echoing across Video Conferences (VCs) is blunt and disturbing:
“If you feel like quitting, quit.”
This message, officers say, is being stressed repeatedly during interactions with top management. And the worrying part is—officers are actually quitting.
Is This a Deliberate Cost-Cutting Strategy?
Many officers within the bank are analysing the situation and feel that this could be a rotten attempt at reducing operational costs, not through efficiency, but by pushing employees to their limits.
Over the past few years:
- ATM maintenance and operations have been handed over to branch staff, increasing workload without additional support
- In branches with huge business volumes, concurrent audit contracts are not being renewed
- This has led to a massive increase in compliance pressure on already overburdened branch officials
Instead of strengthening systems, the burden is being shifted entirely onto officers.
Compliance & Business at Risk
Officers strongly believe that such aggressive cost-cutting measures may:
- Negatively impact compliance, especially in advances
- Increase the risk of errors, audit objections, and vigilance issues
- Ultimately hurt the bank’s business and reputation, rather than improve efficiency
Cost reduction without manpower or process support is not optimisation—it is risk creation.
Merger & Acquisition Buzz Adds to Anxiety
Amid this internal turmoil, there are also news reports and internal speculations of a possible merger or acquisition involving UCO Bank.
According to officers:
- Senior management is reportedly being trained to handle merger / acquisition scenarios efficiently
- This has further intensified anxiety among staff, who fear that current cost-cutting and pressure tactics may be preparatory steps
While no official confirmation exists, the perception alone is enough to damage morale.
UCO Bank work culture at the Breaking Point
One sentiment is coming out common across conversations with officers:
The UCO Bank work culture has deteriorated to a point where it feels there is no comeback.
Daily pressure, lack of empathy, shrinking support systems, and constant threats—direct or indirect—have transformed what was once a respected PSU banking job into a high-stress, unsustainable role.
Final Word
Cost-cutting is a legitimate business exercise.
But cost-cutting by breaking people is not strategy—it is failure.
If experienced officers continue to quit, the long-term damage to institutional memory, compliance strength, and customer trust will be far greater than any short-term savings.
Banking today is not just about numbers, targets, and valuations—it is about people, their health, and their families.
For more real, ground-level banking news, keep visiting HelloBankers.com regularly.
We don’t just report headlines.
We go many steps beyond the news.
We reach the lives of bankers.
We report what bankers actually live through.