In the India of yesteryears, a job in banking was synonymous with prestige, stability, and social standing. The image of a banker—clad in a crisp suit, working in an air-conditioned branch of a nationalized bank—was one of aspiration for millions. Parents dreamed of their children securing a coveted position at State Bank of India or Punjab National Bank, and young graduates vied for roles that promised job security, respectable salaries, and a pension to boot. Fast forward to 2025, and the sheen of banking has dulled significantly. The sector, once a beacon of career success, is increasingly becoming a least sought-after profession for India’s youth. This shift is not merely a change in perception but a reflection of deeper structural, economic, and cultural transformations. The decline of banking’s allure can be attributed to stagnating career growth, intense work pressure, technological disruptions, and the rise of more lucrative and dynamic career alternatives.
To understand the fall, we must first revisit the rise. In the post-independence era, banking was a cornerstone of India’s economic framework. Nationalized banks, established to drive financial inclusion and economic development, were seen as pillars of stability in a nascent economy. A job in a public sector bank (PSB) was a ticket to the middle class, offering not just financial security but also social respect. Bankers were viewed as custodians of the nation’s wealth, wielding influence in their communities. The perks were undeniable: fixed working hours, subsidized housing, medical benefits, and a pension that ensured a comfortable retirement. For a generation emerging from economic scarcity, these benefits were nothing short of a dream.
Private sector banks, which gained prominence in the 1990s post-liberalization, added a layer of glamour to the profession. Banks like ICICI and HDFC introduced modern banking practices, competitive salaries, and a corporate culture that appealed to urban, educated youth. For a time, banking was the gold standard of white-collar jobs, rivaled only by careers in the civil services or medicine. The prestige was not just in the paycheck but in the societal perception of bankers as educated, dependable, and upwardly mobile professionals.
However, the banking sector’s halo began to fade in the 21st century, and by 2025, the cracks have become glaring. One of the primary reasons is the stagnation in career progression, particularly in public sector banks. PSBs, which still employ a significant portion of India’s banking workforce, are notorious for slow promotions and bureaucratic hierarchies. A young probationary officer entering a PSB today may spend years in the same role, with increments that barely keep pace with inflation. The promise of job security, once a major draw, now feels like a trap for ambitious professionals who see peers in other industries climbing the ladder faster.
The work environment in banking has also become increasingly grueling. Bankers, especially in PSBs, face immense pressure to meet unrealistic targets for loan disbursals, deposit mobilization, and cross-selling financial products like insurance and mutual funds. The 2016 demonetization and subsequent policy shifts, such as the push for digital banking and financial inclusion, have piled additional responsibilities on bank staff. Rural and semi-urban branches, in particular, are often understaffed, forcing employees to work long hours with little support. The stress is compounded by constant scrutiny from regulators and the public, especially in the wake of high-profile banking frauds and non-performing asset (NPA) crises. For many, the job has become a high-pressure grind with little reward.
The advent of technology has further eroded banking’s appeal. Digital banking, fintech innovations, and artificial intelligence have transformed the industry, reducing the need for traditional roles. Routine tasks like cash handling, account opening, and loan processing are now automated or outsourced to third-party service providers. While technology has made banking more efficient, it has also sparked fears of job losses. A 2023 report by the Reserve Bank of India highlighted that digital transformation could lead to a significant reduction in entry-level banking jobs over the next decade. For young aspirants, the prospect of entering a sector with shrinking opportunities is a major deterrent.
Moreover, the skills required in modern banking—data analytics, cybersecurity, and digital marketing—are not adequately addressed in traditional banking training programs. Young graduates, who are increasingly tech-savvy, find that their education aligns better with roles in fintech startups, IT firms, or e-commerce giants. These industries not only offer higher starting salaries but also provide a dynamic work culture that values innovation and agility—qualities often stifled in the rigid structures of traditional banks.
Perhaps the most significant factor in banking’s decline is the emergence of more attractive career paths. The startup boom, fueled by India’s digital revolution, has created a plethora of opportunities in sectors like technology, e-commerce, and renewable energy. Companies like Flipkart, Paytm, and Zomato offer not just competitive salaries but also stock options, flexible work arrangements, and a sense of purpose that resonates with Gen Z and millennials. For instance, a software engineer at a unicorn startup can earn upwards of Rs. 20 lakh per annum straight out of college, while a bank probationary officer might start at Rs. 5-7 lakh, with limited scope for rapid growth.
Even within the financial sector, fintech firms and non-banking financial companies (NBFCs) like Credifin Limited are stealing banking’s thunder. These organizations offer specialized roles, faster growth, and a customer-centric approach that appeals to young professionals. The recent US$24.9 million funding raised by Credifin, for example, underscores the vibrancy of the NBFC sector, which is increasingly seen as a more innovative and inclusive alternative to traditional banking.
Cultural shifts also play a role. Today’s youth prioritize work-life balance, personal growth, and creative freedom over the stability that once defined banking’s appeal. The prestige of being a banker has been overshadowed by the allure of being a startup founder, a content creator, or a data scientist. Social media amplifies this shift, showcasing stories of young entrepreneurs and professionals who have achieved financial success and recognition outside traditional career paths.
The Societal Perception Shift
The societal perception of banking has also changed. Scandals involving NPAs, mismanagement, and fraud have tarnished the reputation of banks, particularly PSBs. High-profile cases like the Punjab National Bank fraud in 2018 eroded public trust, painting bankers as complicit in systemic failures. While private banks have largely escaped this stigma, they too face criticism for aggressive sales tactics and customer exploitation. The once-revered banker is now often seen as a cog in a flawed machine, further diminishing the job’s prestige.
To reverse this trend, the banking sector must adapt. PSBs need to overhaul their HR policies, offering faster promotions, better incentives, and training in emerging technologies. Private banks, meanwhile, must focus on improving work culture and reducing employee burnout. The sector as a whole could benefit from partnerships with fintech firms to create hybrid roles that combine the stability of banking with the innovation of startups. Additionally, banks must rebrand themselves as dynamic, tech-driven organizations to appeal to the next generation.
However, these changes will take time, and in the interim, banking risks losing talent to more agile industries. The sector’s historical prestige was built on its ability to offer security and respect in an uncertain world. Today, with India’s economy diversifying and its youth redefining success, banking must reinvent itself to remain relevant. Until then, the days of the banker as a symbol of aspiration are firmly in the past, replaced by a new era where innovation, flexibility, and impact reign supreme.