HDFC, Axis Bank see sharp drop in attrition in FY25 amid training push

Attrition at HDFC Bank and Axis Bank declined in FY25 due to stronger employee engagement, women-focused retention efforts, and new learning and mentoring programmes

Large private sector banks such as HDFC Bank and Axis Bank have recorded a significant drop in employee attrition in the financial year 2024–25 (FY25), driven by enhanced employee engagement programmes and expanded training efforts.

 

At HDFC Bank—the country’s largest private sector lender—employee attrition declined to 22.6 per cent in FY25 from 26.9 per cent in FY24. At Axis Bank, attrition fell to 25.5 per cent from 28.8 per cent. Attrition levels at both banks had hovered around 34 per cent in FY23, post-pandemic, prompting them to take focused steps to curb workforce exits.

 

HDFC Bank said that over the past 24 months, it has sharply focused on reducing attrition across all levels, especially among new joiners and women employees. “As a result, overall attrition and that of new joiners and women employees has been lower in the year under review.” The bank rolled out ‘Nurture, Care and Collaborate’—a capability-building programme to strengthen on-ground experience of its organisational culture. By the end of FY25, the bank had 214,521 employees, of whom 26.1 per cent were women.

 

“…the significant reduction in attrition from 26.9 per cent in FY24 to 22.6 per cent in FY25 underscores the positive strides we are making in fostering an enabling work environment. This is reflected in the healthy engagement scores of employees across levels,” said Sashidhar Jagdishan, managing director and chief executive officer, HDFC Bank, in the FY25 annual report. 

 

To reduce attrition and retain talent, Axis Bank launched several learning initiatives and strengthened its Key Result Area (KRA) assessments and mid-year performance reviews. The bank also implemented a mandatory attrition-based KRA for AVP+ leaders, which contributed to improved retention.

 

“One of our key learning initiatives in fiscal 2025 has been the Knowledge Transfer Programme (KTP), which builds sales capability in frontline employees through drip-based learning. Designed as a learning sustenance programme, it guides new joiners in engaging with their supervisors within their first 90 days, enabling senior employees to mentor juniors and improve lead conversion while reducing attrition,” Axis Bank said in its annual report.

 

Axis Bank had a total employee base of 104,453 as of FY25, of which 28,910 were women.

 

“Several factors contribute to this reduction in attrition among banks. Enhanced employee engagement plays a key role, although not captured in formal metrics. Previously notorious work-life imbalances at some large private banks have improved, as these institutions have eased off on work pressures. Investment in employee training for skill development has also helped in reducing attrition,” a banking analyst said.