2 min. Read
|May 7, 2026 9:55 AM

SBI Staff Federation Warns Against Risks of Outsourced Banking

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All India SBI Staff Federation (AISBISF) has announced a major escalation in its protest against the management of India’s largest public sector lender. 

Citing a “dangerous shift” in employment practices, the federation has called for a two-day nationwide strike on May 25 and 26, 2026, to oppose the increasing outsourcing of permanent banking roles and chronic staffing shortages.

The Fight Against “Precarious” Employment

At the heart of the intensified agitation is the allegation that State Bank of India (SBI) is quietly dismantling its permanent workforce. 

The federation claims that core banking duties, which form the “backbone of dignity and stability,” are being replaced by outsourced, contractual arrangements.

Union leaders argue that this reliance on third-party staff not only undermines job security but also compromises customer data protection and operational accountability. 

“Hard-earned protections are being diluted and ignored,” the AISBISF stated in its strike notice, highlighting that the move toward temporary engagements denies workers a secure future.

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Vanishing Cadres and Security Concerns for SBI Staff Federation

The protest further highlights a nearly three-decade freeze on the recruitment of messengers. 

The union claims the bank has allowed an entire cadre to “vanish,” eliminating entry-level opportunities for economically weaker sections of society.

Security has also emerged as a flashpoint. Following a recent daylight robbery at a Surat branch, the federation has lambasted the bank for failing to recruit Armed Guards. 

They contend that the lack of specialized security personnel leaves both employees and customers vulnerable to criminal threats.

A Comprehensive 16-Point Charter

Beyond outsourcing, the strike notice encompasses a 16-point demand list, including:

  • NPS Flexibility: Allowing employees to choose their Pension Fund Manager.
  • Wage Parity: Addressing disparities following the 12th Bipartite Settlement.
  • Inter-Circle Transfers: Restoring transfer rights for staff recruited after 2019.
  • Cross-Selling Pressures: Halting aggressive “mis-selling” practices.

SBI Staff Federation’s Scheduled Agitations

Ahead of the May 25 strike, the federation has planned a series of “silent sit-ins” and lunchtime demonstrations across Local Head Offices (LHOs). 

The union also plans to submit formal memoranda to the Finance Minister on May 19 and the Prime Minister on May 21 to seek government intervention.


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About the Author

Sahiba Sharma

Contributing Writer

Contributing writer at SightsIn Plus. Passionate about HR technology and workplace trends.
View all articles by Sahiba Sharma