India’s leading commercial banks—HDFC Bank, State Bank of India (SBI), and Axis Bank—have significantly reduced their hiring activity in FY25.
This reflects a cautious approach amid slower credit growth, limited branch expansion, and improved employee retention.
According to annual disclosures and industry reports, the three banks collectively added fewer employees compared to previous years, marking a shift in workforce strategy.
HDFC Bank hired 49,713 employees in FY25, a sharp drop from 89,115 in FY24 and well below FY23 levels.
SBI, the country’s largest lender, added just 1,770 new hires, down from 10,661 the previous year.
Axis Bank recruited 31,674 employees, compared to 40,724 in FY24.
Credit Demand and Branch Expansion Slowdown
The hiring slowdown is closely tied to muted growth in retail credit segments, including personal loans, auto loans, home loans, and gold loans.
Unfavourable weather conditions also impacted sales of seasonal consumer goods, indirectly affecting demand for related financing roles.
Branch expansion has also moderated. HDFC Bank added 700 branches in FY25, down from 900 in FY24 and 1,479 in FY23.
Axis Bank, however, slightly increased its footprint, opening 500 branches compared to 475 the previous year.
Attrition Rates Improve Across Banks
Despite the hiring cuts, attrition rates have improved, allowing banks to focus on internal mobility and targeted lateral hiring.
HDFC Bank’s attrition rate dropped to 22.6% from 26.9% in FY24, while Axis Bank saw a decline to 25.5% from 28.8%.
SBI maintained a notably low attrition rate of below 2%, reflecting its emphasis on internal career progression and stability.
These improvements are attributed to employee engagement initiatives, training programs, and performance-linked incentives, which have helped banks retain talent more effectively.
Hiring Slowdown: Shift Toward Efficiency and Digital Transformation
The hiring slowdown is not viewed as a sign of distress but rather a strategic recalibration.
Banks are increasingly prioritizing efficiency over expansion, investing in technology, automation, and digital banking platforms to drive growth.
This shift has reduced the need for large frontline teams and prompted a focus on per-employee productivity.
For instance, HDFC Bank reported ₹5.23 crore in business per employee and ₹34 lakh in profit per employee in FY24, outperforming peers on both metrics.
These ratios are closely monitored by regulators and investors as indicators of operational health and return on equity.
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