Five-Day Banking Week Could Cut Branch Costs, But Will Banks Actually Save Big?
Mumbai: A proposed five-day banking week could help banks trim some branch operating expenses, but the overall financial savings may remain limited as employee costs and other fixed expenses would largely continue. The Indian Banks’ Association (IBA) has constituted a high-level committee with bank unions to examine the implementation of a five-day banking week and declaring the remaining working…
A proposed five-day banking week could potentially help Indian banks cut some of their branch operating expenses, but the overall financial savings may be limited as employee costs and other fixed expenses would likely remain unchanged. The Indian Banks’ Association (IBA) has formed a high-level committee with bank unions to assess the feasibility of implementing a five-day banking week, declaring the other Saturdays as holidays.
Currently, banks operate on the first, third, and fifth Saturdays while remaining closed on the second and fourth Saturdays.
The most significant savings could likely stem from variable expenses related to keeping branches and administrative offices open on Saturdays. These costs include electricity, air conditioning, housekeeping, security, transportation, generators, and other consumables. However, there is currently no industry-wide estimate of the potential savings from adopting a five-day schedule.
While staff expenses would remain a substantial component of banking costs, even reducing branch operations to five days could result in savings. For instance, the State Bank of India's FY25 financial highlights indicate staff expenses of Rs 64,352 crore and overhead expenses of Rs 53,717 crore, totaling around Rs 1.18 lakh crore.
Banks would also need to ensure weekend coverage for critical functions such as cybersecurity, technology systems, fraud monitoring, data centres, treasury operations, and assisting customers with cash transactions, KYC, and documentation.
India's rapid shift towards digital transactions could reduce the reliance on Saturday branch operations. In August 2026, UPI processed 24.51 billion transactions worth Rs 29.82 lakh crore, while ATMs, mobile banking, and internet banking remained accessible even when branches were closed. Physical branches, however, continue to be essential for cash transactions, customer identification processes, documentation, loan services, and customers requiring assisted banking.
Ultimately, the financial impact of a five-day banking week will depend on how banks reorganize their employees and operations during the remaining working days. The crucial question remains whether the costs associated with Saturdays can be genuinely eliminated rather than simply shifted elsewhere. Until the committee finalizes an operating framework, estimating industry-wide savings from a five-day banking week would remain speculative.
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