HDFC Bank's hiring dropped from 89,000 in FY24 to 49,713, while SBI hired only 1,770 compared to over 10,000. Lower attrition allows banks to focus on internal growth and targeted hiring.
India's leading banks have considerably scaled back hiring in FY25, reflecting a mix of caution, recalibration, and shifting workforce priorities. According to reports, muted retail loan growth, slower branch expansion, and falling attrition are among the key reasons driving this hiring slowdown.
According to various reports, HDFC Bank reportedly hired 49,713 employees in FY25, a fall from over 89,000 the previous year. State Bank of India (SBI) reportedly saw a sharp drop, hiring just 1,770 compared to more than 10,000 in FY24. Meanwhile, Axis Bank brought in as many as 31,674 new recruits, down from 40,724 last year.
“Growth in areas like personal loans, home loans, auto loans, and gold loans has been muted, so banks have been cautious about adding new feet on the street,” said Kartik Narayan, CEO - Staffing at TeamLease Services Limited.
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Attrition Down, Strategy Up
The hiring cuts are not necessarily a sign of distress. In fact, lower attrition seems to be giving banks breathing room to focus on internal growth and targeted lateral hiring. HDFC Bank’s attrition dropped to 22.6%, Axis Bank to 25.5%, and SBI’s attrition remained below 2%.
“In FY25, significant improvements are observed in the attrition rates of major private banks in India,” said Gaurav Chharia, a fintech and banking consultant. “This positive shift is credited to a heightened emphasis on employee engagement, wellness initiatives, and performance incentives.”
Kotak Mahindra Bank also reported an impressive drop in attrition — from 40% in FY24 to 33% this year — showing that talent retention is finally getting the attention it deserves.
The Bigger Picture: Efficiency Over Expansion
Rather than expanding headcount aggressively, banks are now looking at smarter staffing and deeper productivity.
“Who’s hiring, who’s firing, and who’s efficient? That’s what matters now,” wrote Keerthi Kanth Maturi, AVP - Financial Reporting at HDFC Bank.
Maturi pointed out that India’s banking workforce grew by 7% year-on-year in FY24, with a clear shift in composition. While public sector banks trimmed staff by 2%, private sector banks increased headcount by 10%. HDFC led net hiring (+40.3k), followed by Axis (+12.4k) and ICICI (+12k). SBI, on the other hand, reduced its workforce by 3.6k due to automation and retirements.
The focus is shifting to per-employee productivity and profitability — metrics closely watched by both regulators and investors.
Private Banks Lead on Productivity
Data from FY24 reveals that private banks are outperforming public banks in terms of both productivity and efficiency:
- HDFC Bank: Rs5.23 crore business/employee, Rs34 lakh profit/employee
- ICICI Bank: Rs3.53 crore business/employee, Rs26 lakh profit/employee
- Kotak Mahindra Bank: Rs2.97 crore business/employee, Rs21 lakh profit/employee
- IndusInd Bank: Rs2.70 crore business/employee, Rs15 lakh profit/employee
These ratios are critical. For regulators like RBI, they indicate whether banks have enough staff for compliance and service. For investors, higher profit per employee and rising business per head are signs of durable returns. Any unexpected dip may signal a deeper operational challenge.
“When business goes up but profit doesn’t, red flags go up. We’ve seen this before—during the balance sheet clean-up and PSB consolidation,” Maturi observed.
The Road Ahead
Banks appear to be in a phase of strategic recalibration—choosing to invest in internal career growth, digital partnerships, and lateral hiring, especially in tech, risk, and wealth management.
