The Indian banking industry experienced a remarkable hiring surge in FY23, onboarding a record 123,000 new employees, marking the highest annual net headcount growth in a decade, according to data from the Reserve Bank of India (RBI). This robust hiring trend is expected to continue throughout FY24, driven by aggressive expansion plans of private banks in tier 3 cities and rural areas. The previous record for annual net headcount addition was set in FY11 with 125,000, followed by FY12 with 124,000.
The expansion of regional banks fueled a staggering 61% jump in net headcount addition in FY23 compared to FY22. The total employee count rose by an impressive 7.4% year-on-year, reaching a total of 1.76 million.
Top private banks, including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, IDFC First Bank, Bandhan Bank, and AU Bank, have been instrumental in driving this growth. The industry is witnessing high attrition rates, particularly for relationship managers and branch network staff, leading to increased demand for skilled professionals.
A study by ET revealed that the top 15 private banks in India added an average of 350 employees every working day in 2023. These banks have been grappling with an average attrition rate of 11% over the past 12 months, necessitating the replacement of approximately 70,000 employees. Axis Bank alone is projected to expand its workforce by 7-8% this financial year. HDFC, ICICI, and Bandhan Bank collectively hired 40,000 employees in the first half of the financial year.
Following these observed trends, the banking sector is poised to surpass the previous year’s record and potentially achieve an all-time high in headcount growth.
