Private Banks Cut Back on New Hiring Amid Digital Shift and Lower Attrition

Hiring across India’s top private banks has slumped to a three-year low in FY25, driven by slowing attrition and an accelerated shift to digital channels. A Mint analysis of annual reports showed that banks such as HDFC Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, IndusInd Bank, and Yes Bank together hired 1.31 lakh employees in FY25 - a sharp 32% drop from the previous year.

The trend signals a deeper structural change. With more customers relying on net banking, UPI, and mobile apps, branch operations require fewer staff. Experts say much of the heavy hiring done during the pandemic has now been absorbed, and banks are focusing on training and promoting internal talent rather than relying on external recruitment.

Bank-wise Hiring Shifts

HDFC Bank recorded the steepest fall, with fresh additions plunging 44% year-on-year to 49,713. Axis Bank followed with a 22% decline, hiring 31,674 employees in FY25 against 40,724 in FY24.

Attrition at Multi-Year LowsA major reason behind muted hiring is falling attrition. ICICI Bank saw employee exits decline to 18% from 24.5% last year, while HDFC Bank’s attrition eased to 22.6% from 26.9%. Axis Bank too reported a drop from 28.8% to 25.5%. IndusInd Bank, which had one of the highest churn rates earlier, reduced attrition dramatically from over 50% in FY23 to just 29% in FY25 through succession planning and leadership development.

Where Hiring Still Happens

While branch-related hiring is shrinking, banks are selectively adding talent in technology, AI, cybersecurity, and wealth management - areas seen as critical for the next phase of growth. Increasingly, new jobs are contract-based, giving banks more flexibility.

Looking Ahead

Industry watchers believe FY26 will see continued caution in recruitment. With digital adoption deepening and attrition remaining low, the demand for entry-level banking jobs is likely to remain subdued. Banks, instead, are expected to double down on internal promotions and targeted hiring for niche skills, reshaping the traditional idea of a banking career.

Disclaimer: This article is based on publicly available data, annual reports of banks, and expert commentary. It is intended for informational purposes only and should not be construed as financial, investment, or career advice. Readers are advised to verify details independently before making any decisions.