A five-day banking week may lower electricity, security and other branch expenses, but high staff and fixed costs could limit overall savings for banks.

A five-day banking week may lower electricity, security and other branch expenses. |

Mumbai: A proposed 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 Saturdays as holidays.

Currently, banks remain closed on the second and fourth Saturdays while operating on the first, third and fifth Saturdays, where applicable.

Where Banks Could Save

The clearest savings could come from variable expenses associated with keeping branches and administrative offices open on Saturdays.

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These include electricity, air conditioning, housekeeping, security, transportation, generators and other consumables.

However, there is currently no industry-wide estimate showing how much banks could save by moving to a five-day schedule.

Staff Costs Will Remain

Employee expenses, one of the biggest components of banking costs, are unlikely to decline merely because branches operate fewer days.

State Bank of India’s FY25 financial highlights showed staff expenses of Rs 64,352 crore and overhead expenses of Rs 53,717 crore, taking total operating expenses to around Rs 1.18 lakh crore.

Banks would also need weekend coverage for cybersecurity, technology systems, fraud monitoring, data centres, treasury operations and other critical functions.

Digital Banking Changes Equation

India’s rapid shift towards digital transactions could reduce dependence on Saturday branch operations.

UPI processed 24.51 billion transactions worth Rs 29.82 lakh crore in August 2026, while ATMs, mobile banking and internet banking remain available even when branches are shut.

Physical branches, however, continue to be important for cash transactions, KYC, documentation, loan services and customers requiring assisted banking.

Savings Depend On Final Model

Ultimately, the financial impact will depend on how banks reorganise employees and operations during the remaining working days.

The crucial question is whether Saturday expenses can genuinely be eliminated rather than shifted elsewhere. Until the committee finalises an operating framework, estimating industry-wide savings from a five-day banking week would remain speculative.

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