Private banks surpassed public sector banks in expanding their workforce in the previous financial year. Top six private banks increased their employee count by 14%, adding nearly 74,000 employees, taking the total to 610,000 at the end of March 2024. In contrast, top six public banks saw a 2% decline in their employee count to 620,000 by the end of FY24, according to the latest annual reports of banks.
“Following the merger of some public sector banks four years ago, there has been a noticeable slowdown in hiring activity as lenders have begun to optimise the use of their existing human resources,” said a senior official of a public sector bank. “The influx of additional workforce from the merger has lessened the need for new hirings, with these banks are now making use of the larger pool of employees to handle daily operations,” he added.
In the last round of consolidation in the banking sector, 10 state-run banks were merged into four in 2020.
Among private banks, largest lender HDFC Bank led the hiring spree, adding around 40,000 employees in the previous fiscal year. Axis Bank added 12,400 employees while ICICI Bank increased its employees count by around 9,200.
“Private banks have started focusing on semi-urban and rural areas. They are hiring more because they are opening branches in smaller cities and towns,” said the head of retail banking of a private bank. “Also, private banks are growing their business faster than public sector banks which means they require more people.”
The impact of high loan demand is also visible in hiring, with private banks adding more strength to their credit department. The hiring spree of lenders will gain momentum as the festival season begins from the next month, say experts.
“There is a lot of demand from private banks for human resources in retail lending. Hiring demand is more for professionals having experience in personal loans, car loans and other retail loans,” Krishnendu Chatterjee, VP and business head (BFSI), TeamLease Services, told FE. “Several private banks have ventured into the microfinance business and it is creating a lot of demand for personnel with sales and collections background in the rural segment,” he added.
Hiring by private banks have remained strong in the past few years. The total number of employes of six private banks – including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank and Yes Bank – jumped from 400,000 at the end of March 2021 to 610,000 at the end of March this year, reflecting a gain of 53%.