In the last six months, banks have seen a 10-15 per cent increase in hiring for sales staff due to the regulatory adjustments and cost recalibration of the lenders, marking a shift from cautious hiring environment, according to TeamLease Services data.
“Hiring momentum is significantly higher among mid-sized private banks and NBFCs, which are aggressively expanding to capture market share in Tier-II and Tier-III cities. While large private banks have adopted a calibrated approach focused on technology-led productivity and cost optimisation, mid-sized players are actively growing their frontline presence to scale newer lending products and localised operations,” said Balasubramanian A, senior vice-president, TeamLease Services.
The six-member monetary policy committee of the central bank reduced the policy repo rate by 25 basis points (bps) in December. In 2025, the policy repo rate was cut by a cumulative 125 bps. Bankers expect the lower cost of fund benefits to start kicking in, which will boost the growth in business coupled with supportive growth figures, indicating a robust year ahead.
“In terms of hiring strategies for lenders, hiring is now more focused on the business side rather than collections,” said a private sector banker.
“New pressures have eased because the benefit of lower cost of funds is starting to kick in, though with a lag. These benefits are expected to accrue through 2026 and began showing from Q3. There are still two to three quarters left for the full impact of lower funding costs to play out.”
In a note to their clients, BNP Baribus noted that the credit growth revival should translate into earnings momentum.
“We expect large banks to have a benign margin expansion or, at the very least, stable margins starting H1 FY27. We also expect reasonable credit growth to translate into earnings growth momentum for banks in FY27 – a key re-rating catalyst,” the note said.
In a recent report, Sachin Seth, chairman- CRIF High Mark, and regional managing director – CRIF India & South Asia, said, “Despite tightening in unsecured segments, the industry has responded with agility, strengthening secured products and supporting sole proprietors and rural borrowers.”
“Overall, hiring for business growth is increasingly focused on secured lending, branch expansion, and sales roles rather than recovery and collections. This reflects a broader strategic shift toward stability, asset quality, and sustainable growth. Large part of lending has moved toward secured products. In secured lending, the need for aggressive collection agents is much lower, and the emphasis is more on business development,” another private sector bank official said on the basis of anonymity.
According to experts, collections are time-sensitive in certain unsecured small-ticket loans wherein, after a year, or year and a half, lenders often decide to sell the assets to asset reconstruction companies (ARCs) due to which lenders move away from aggressive collection strategies.
Bankers also said demand is still there for recovery-focused roles in the unsecured segment – like credit cards and personal loans.
“While collection numbers have moderated, consolidation is also taking place, as unsecured portfolios do not require as many collection agents. In some higher-risk unsecured pockets, lenders are consciously pulling back, which reduces the need for collection agencies,” the banker added.
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10-15% rise in hiring for sales staff for banks in past six months, according to TeamLease Services
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Hiring now more focused on business side rather than collections, said pvt bankers
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Bankers said demand still there for recovery-focused roles in unsecured segment
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According to experts, collections are time-sensitive in certain unsecured small-ticket loans
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