Mumbai, Jan. 5 -- Employees at India's state-owned banks are becoming more productive than their private sector counterparts, shows the regulator's data. Those tracking the sector attributed it to three factors: lack of hiring by public lenders over the years, improvement in their work culture, and a push by the government to make them more productive.

The median profit generated by a public sector bank employee was Rs.19.6 lakh in FY25 compared to Rs.14.5 lakh for a private bank employee, according to data released by the Reserve Bank of India (RBI) on 29 December. The gap has widened since FY24, when the per-employee profit of government-owned banks stood at Rs.15.2 lakh, surpassing Rs.14 lakh for their private peers.

Profit per emplo...