ICICI Bank, India’s second-largest private sector lender, has reported the lowest employee attrition rate among major private banks for the past three consecutive fiscal years, according to its latest
Business Responsibility and Sustainability Reporting (BRSR) data. The bank’s attrition rate dropped to 18% in FY25, down from 24.5% in FY24 and 30.9% in FY23, reflecting a steady improvement in employee retention.
This trend stands out in an industry that has historically grappled with high turnover, especially in entry- and mid-level roles.
ICICI Bank’s performance suggests a combination of competitive remuneration, stable work culture, and targeted HR strategies aimed at improving employee engagement and reducing voluntary exits.
Comparative Landscape: ICICI Bank Leads the Pack
The BRSR data reveals that ICICI Bank’s attrition rate is significantly lower than its private sector peers:
| Bank | FY23 Attrition | FY24 Attrition | FY25 Attrition |
|---|---|---|---|
| ICICI Bank | 30.9% | 24.5% | 18% |
| HDFC Bank | 34.2% | 26.9% | 22.6% |
| Axis Bank | 28.8% | 25.5% | 25.5% |
| Kotak Mahindra Bank | 39.6% | 33.3% | 33.3% |
| IndusInd Bank | 51% | 37% | 29% |
While most private banks have seen a year-on-year decline in attrition rates, ICICI Bank’s sharper drop indicates a more effective approach to workforce stability.
Post-Pandemic Stabilization and Market Dynamics
Industry experts attribute the overall decline in attrition across private banks to a stabilizing job market in the Banking, Financial Services, and Insurance (BFSI) sector.
Following a recruitment surge post-pandemic, many banks experienced elevated attrition as employees explored opportunities in fintech and startups.
However, as hiring slowed and digital services matured, job-switching among entry-level staff has declined.
A senior HR executive from a private bank noted, “The market appears to be stabilised. Banks are not aggressively recruiting, and employees are less inclined to leave for fintech roles. ICICI Bank’s retention reflects a well-managed transition through this phase.”
Strategic HR Practices Behind ICICI’s Performance
ICICI Bank’s ability to retain talent is credited to several internal factors:
- Structured career progression and internal mobility
- Performance-linked incentives and competitive compensation
- Investment in digital training and upskilling
- Focus on employee wellness and engagement programs
These initiatives have helped the bank maintain continuity in operations and reduce the costs associated with frequent hiring and onboarding.
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