Private sector banks in India have reported a dip in their manpower exit rate, as per data by a bank’s Business Responsibility and Sustainability Reporting (BRSR).
Of the various banks surveyed, the lowest was for ICICI Bank, the report stated.
The data was collected for the last three financial years, which also marked a sustained decline on a year-on-year basis.
At ICICI Bank, the country’s second-largest private sector bank, the employee attrition rate declined to 18 per cent in FY25 from 24.5 per cent in FY24, said the report. During 2022-23, the bank reported an attrition rate of 30.9 per cent, which was also lower than its competitors.
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The bank attributed employees’ higher stickiness due to competitive remuneration and a better working environment.
Its larger peer, the HDFC Bank, also reported a decrease in the attrition rate, recording an employee attrition rate of 22.6 per cent in FY25, compared to 26.9 per cent in FY24. During 2022-23, the attrition was 34.2 per cent.
Similarly, the attrition was down for Axis Bank as well, marking a 25.5 per cent dip, down from 28.8 per cent in FY24.
Kotak Mahindra Bank's manpower exit rate fell to 33.3 per cent from 39.6 per cent in the previous year, according to their annual and BRSR reports.
For IndusInd Bank, the attrition rate was 29 per cent in FY25, lower than 37 per cent witnessed during 2023-24 and 51 per cent in FY23.
A senior HR executive of a bank, reflecting on the slowing attrition rate, said that there may be various reasons for fewer employees leaving their jobs, including subdued entry-level job market in the BFSI and fintech industries and the growth of digital services.
Most private sector banks went on a recruitment spree post-pandemic, which led to a high attrition rate subsequently.
"Now, the market appears to be stabilised, meaning banks are not heavily recruiting and the entry-level employees are not leaving banks to join fintech companies," he observed.
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