Top banks' fresh hiring slowed in FY25 amid moderation in business growth

Hiring by India's major commercial banks, including HDFC Bank, SBI, and Axis Bank, has declined significantly in FY25 due to slower growth, reduced branch expansion, and improved attrition rates

Hiring by the country’s large commercial banks fell significantly in 2024-25 (FY25) amid a moderation in business growth — particularly in the retail — limited branch expansion, and improved attrition rates.

 

Data from banks’ annual reports shows that HDFC Bank, India’s largest private-sector lender, hired 49,713 professionals in FY25, against 89,115 the previous year, and over 85,000 in FY23. Similarly, State Bank of India (SBI), the country’s largest lender, hired just 1,770 in FY25, compared with 10,661 in FY24, and 8,595 in FY23. Axis Bank, the third-largest private-sector lender, hired 31,674 in FY25, against 40,724 the previous year.

 

According to Kartik Narayan, chief executive officer, staffing, Teamlease Services Ltd, the slowdown in hiring across banks had a lot to do with the Reserve Bank of India’s tight stance in the past 18 months. “Growth in areas like personal loans, home loans, auto loans, and gold loans has been muted, so banks have been cautious about adding new feet on the street. Most of the hiring has been just backfilling, not expansion,” he said.  Unseasonal rains also hit the fast-moving consumer goods segment, especially sales of products like air conditioners and refrigerators, which in turn affected downstream sales roles in the banking, financial services and insurance sector tied to consumer financing.  

 

In its annual report, HDFC Bank said FY25 was a year of consolidation for talent acquisition (TA), as the bank accelerated its efforts to build a scalable, inclusive and future-ready hiring engine. “Our focus was on optimising TA efficiency and cost, embedding intelligent selection methods through AI and, most importantly, investing in a sustainable talent pipeline,” the bank said, adding that a key strategic priority was the expansion of job-ready models, designed to align fresh talent with business requirements from day one. HDFC Bank’s employee strength stood at 214,521 at the end of FY25. 

 

New branch addition by the bank also slowed down during the year. It added over 700 branches in FY25, down from 900 branches the year before. In FY23, it had added a record 1,479 branches — a majority of them in semi urban and rural locations.

 

Axis Bank, on the other hand, added 500 new branches in FY25, compared with 475 in FY24, and 145 in FY23. It said it hired over 10,000 people from campuses in FY25. “The bank entered into two new partnerships — one to meet emerging demand in rural and semi-urban locations, and a second to tap into new talent pools through a digital service provider,” Axis Bank said in its annual report for FY25. Its total employee count stood at 104,543 at the end of year.

 

Meanwhile, attrition rates in the banking sector have come down, with large banks reporting a lower attrition level than earlier years, due to better employee-engagement programmes.

 

While HDFC Bank’s attrition rate dropped to 22.6 per cent in FY25 from 26.9 per cent in FY24, Axis Bank’s declined to 25.5 per cent from 28.8 per cent. In FY23, after the pandemic, their attrition levels had been 34.2 per cent and 34.8 per cent, respectively. The banks’ efforts to contain attrition since seem to be yielding results.

 

According to SBI, it prioritises internal career growth, beyond recruitment, ensuring employees have opportunities to advance within the bank. “SBI has expanded its talent-acquisition strategy beyond traditional advertisements by leveraging social media, head-hunters, consultants, and engaging video campaigns — particularly to attract Gen Z talent,” the bank said in its annual report.

 

“The bank continues to focus on lateral hiring to bring specialised expertise in areas like information technology, information security, risk (including climate), wealth management, and economics. Additionally, the bank has initiated the recruitment of sportspersons to support Indian sports and blend athletic spirit with professional excellence at workplace,” it further said. SBI’s attrition rate is below 2 per cent and its total employee base stands at 236,226.