ICICI Bank goes slow on hiring, to recruit 6,000 staff in FY12

ICICI Bank, the country's largest private sector lender, appears to be going slow on its hiring plans for the current financial year, to keep a tight leash on operating expenses.

The bank plans to recruit about 5,000-6,000 employees, mostly at the entry level, in the current financial year, its Managing Director and Chief Executive Officer Chanda Kochhar said today.

The bank had increased its headcount by over 17,000 employees between June 30, 2010 and June 30, 2011 as it opened new branches and expanded operations across the country. As a result, operating expenses surged by 23 per cent while staff cost increased by 27 per cent year-on-year in the first three months of this financial year.

Currently, the bank has 60,000 employees including 4,000 staff of the Bank of Rajasthan, which it acquired last year. "From here on we do not expect to recruit further employees in any significant way," N S Kannan, executive director and chief financial officer of the bank told investors after the first quarter earnings announcement.

The average salary increase in the bank has been 11 per cent this year. The bank aims to keep its cost to income ratio at 41 per cent and cost to asset ratio at 1.7 per cent in 2011-12 (April-March).

Kochhar said fresh hiring of 5,000-6,000 employees was needed as the bank continues to expand its operations by opening new branches across the country.

The bank had 2,533 branches and 6,425 automated teller machines (ATMs) as of June-end.

ICICI Bank aims to grow its balance sheet by 18-20 per cent in the current financial year.