In the fiscal year FY23, Indian banks witnessed their most substantial surge in hiring over the past decade, according to the data from the Reserve Bank of India the addition of 1,23,000 new employees.
In 2023, the top 15 private banks in India hired an average of 350 employees every working day. These banks experienced an average attrition rate of 11 per cent over the past 12 months, leading to 70,000 replacement hires.
Axis Bank is anticipated to increase its workforce by 7-8 per cent in the current financial year. Additionally, HDFC, ICICI and Bandhan Bank collectively added 40,000 employees in the first half of the fiscal year. Based on these trends, the banking sector is on track to surpass the previous year’s record and potentially achieve an all-time high in headcount growth.
The RBI data further reveals that Indian banks hired 1,23,000 new employees during the last financial year (FY23).This hiring trend is anticipated to persist in the current financial year (FY24), especially among private banks, as they actively recruit across different roles to extend their presence into tier 3 cities and rural areas. The highest yearly increase in bank staff numbers occurred in FY11 with 1,25,000 additions, followed by 1,24,000 in FY12.
Regional banks have expanded, resulting in a 61 per cent increase in net headcount in FY23 compared to the previous year. The total employee count rose by 7.4 per cent year-on-year, reaching 1.76 million. Leading private banks such as HDFC, ICICI, Axis, Kotak Mahindra, IndusInd, IDFC First, Bandhan and AU Bank contributed to this growth. Notably, roles such as that of relationship managers and branch network staff saw increased demand due to higher attrition rates.
