HDFC Bank, the country’s largest private bank, has reduced the notice period for outgoing employees by more than half. Employees leaving the organisation will now be required to serve a notice period of just 30 days against the earlier 90 days.
“This change in policy aims to provide more flexibility for employees while ensuring smooth transitions,” a senior official of HDFC Bank told FE.
HDFC Bank employees were informed of the change in the HR policy by email on May 6, according to sources.
A query sent to HDFC Bank remained unanswered till the time going to the press.
Employees under probation will serve a notice period of 30 days. According to the sources, employees can even be relieved in less than 30 days if their request is approved by their reporting manager.
HDFC Bank is the second major private lender to cut its notice period. In 2020, ICICI Bank had reduced its notice period to 30 days from 90 days. Kotak Mahindra Bank has a notice period of 90 days, as do public sector banks like State Bank of India, Punjab National Bank and Bank of Baroda.
The total number of employees at HDFC Bank, the largest bank by market capitalisation, crossed the 200,000 mark to reach 208,066 in the third quarter of FY24.
The lender’s policy change comes amid continued pressure of high attrition at private banks. Attrition at HDFC Bank was at 34.15% in FY23, as against an industry average of 24.7%.
“It’s a win-win situation for banks and employees. For banks it will lead to improvement in the productivity because the employee on notice period works half-heartedly,” said the official.