Macquarie Research has identified five operating trends that make ICICI Bank stand out among large private banks, led by lower attrition, disciplined hiring, and stronger employee productivity. The brokerage’s recent annual report review said large private banks have increasingly moved from workforce expansion towards productivity-led growth, with ICICI Bank showing one of the clearest improvements in employee metrics.
A separate Macquarie flashnote on FCNR(B) deposits added another aspect to the analysis. As per that report, ICICI Bank accounted for about 18% of the scheme’s mobilisation, although this is a smaller part of the overall thesis.
| Key metric | ICICI Bank | Peer context |
| FY26 attrition | 16% | HDFC Bank: 23% |
| Attrition change | ~200 bps lower YoY | HDFC Bank: flat |
| Employee growth trend | Declined over 2 years | HDFC Bank: -2% FY26 |
| Total insurance-income growth | -9% | Axis Bank: 17%; SBI: 19% |
1. ICICI Bank has one of the lowest attrition rates
The first reason is employee retention. Macquarie’s report is titled “ICICI stands out in terms of lower attrition rates”, with the bank’s attrition easing by about 200 basis points year on year to 16% in FY26. HDFC Bank‘s attrition remained flat at 23%, while IndusInd Bank’s improved but stayed elevated at 40%.
Macquarie said “ICICI stands out in terms of lower attrition rates”, pointing to the improvement even as large private banks have become more selective in hiring. The combination gives ICICI Bank a more stable workforce while keeping employee additions under control, which the brokerage expects to support operating leverage without compromising frontline capacity.
2. Hiring restraint is becoming structural
Macquarie’s second finding is broader but particularly relevant for ICICI Bank. “Hiring restraint is becoming structural”, the brokerage said, as large private banks moved decisively towards productivity-led growth. ICICI Bank and Kotak Mahindra Bank reduced employees over the past two years, while HDFC Bank and Axis Bank cut headcount by 2% and 3%, respectively, in FY26.
The change means banks are seeking more business from their existing workforce rather than relying on continuous employee additions. Macquarie said leaner hiring, combined with lower attrition, should strengthen operating leverage while maintaining service quality and frontline capacity.
3. Employee productivity is rising
The third factor is the increase in business generated per employee. Macquarie said “Hiring restraint has materially improved employee productivity”, with advances per employee rising 14-22% across large private banks in FY26. Balance sheets expanded without a comparable increase in staffing, allowing employee productivity to improve.
For ICICI Bank, this trend is important because the bank has reduced employee numbers over the last two years while also recording the strongest attrition improvement among the large private banks covered in the report. Macquarie’s assessment suggests that technology-led efficiencies and tighter workforce additions are allowing banks to extract more output from existing staff.
4. Branch expansion is becoming more productive
The fourth reason is the changing economics of branch networks. Macquarie said “Eking out greater productivity from staff and branches” had become an important feature of bank operations as branch additions slowed. Across its coverage banks, branch additions rose about 4% in FY26 compared with 5% in FY25.
The brokerage said banks were combining selective branch expansion with leaner staffing and higher distribution throughput. Public sector banks recorded the strongest improvement in advances per branch, with SBI and Bank of Baroda reporting increases of 16% and 14%, respectively.
For ICICI Bank, the significance lies in the broader productivity trend rather than a standalone branch-growth call. The report indicates that large private banks are increasingly focused on getting greater output from their existing distribution infrastructure.
5. ICICI Bank still has a sizeable FCNR(B) advantage
The fifth factor comes from Macquarie’s separate FCNR(B) flashnote and provides an additional funding-related positive for ICICI Bank. FCNR(B) mobilisation crossed $100 billion by August 31, far above the initial $30-40 billion expectation.
Macquarie said ICICI Bank was among the “Few disproportionate beneficiaries”, having mobilised about $17.88 billion, equivalent to roughly 18% of total FCNR(B) deposits versus its 7% share of the overall deposit market. More than 70% of the associated leverage was financed through ICICI Bank’s own balance sheet, including about $9 billion of loans from its international branches and subsidiaries.
The mobilisation was equivalent to about 9% of ICICI Bank’s outstanding deposit base as of March 2026. Macquarie cautioned that FCNR(B) deposits were “likely to entail some dilution to margins”, but said the overall impact was positive because of the material easing in liquidity pressures.
Bancassurance is the one weak spot
Not every operating indicator was positive for ICICI Bank. Macquarie said “Bancassurance income lends profitability support” across the sector after the removal of Goods and Services Tax on individual life and health insurance policies in the second half of FY26, but growth varied significantly between banks.
ICICI Bank’s total insurance income declined 9%, with life insurance income down 12% and general insurance income lower by 1%. That compared with 17% growth for Axis Bank, 11% for Kotak Mahindra Bank and 19% for State Bank of India. Macquarie said “growth remained divergent across players.”
| Bank | Employee trend, FY26 | Attrition, FY26 | Advances per employee | Insurance-income growth |
| ICICI Bank | Declined over 2 years | 16% | Improved | -9% |
| HDFC Bank | -2% | 23% | Improved | 10% |
| Axis Bank | -3% | Improved | Improved | 17% |
| Kotak Mahindra Bank | Declined over 2 years | — | Improved | 11% |
| IndusInd Bank | Increased | 40% | — | -29% |
| SBI | +4% | — | Improved | 19% |
| Bank of Baroda | +2% | — | Improved | 3% |
Why ICICI Bank stands out
Macquarie’s annual-report review does not make a fresh valuation call on ICICI Bank, but its operating data puts the lender in a favourable position on employee productivity and attrition. The bank has reduced employee additions, brought attrition down to 16% and benefited from the broader productivity gains visible across large private banks.
Overall, Macquarie’s latest annual-report assessment leaves ICICI Bank with a strong operating profile on the measures it examined.
Disclaimer: This article is based on Macquarie Research’s India Banks – Annual Report Insights dated September 7, 2026, with the FCNR(B) discussion drawn from its separate India banks – FCNR windfall flashnote dated September 2, 2026. The information is provided solely for informational and educational purposes and should not be considered investment advice or a recommendation to buy, sell or hold any security. Brokerage analysis, estimates and views are subject to change and may differ from actual business or market outcomes. Stock market investments are subject to market risks, including possible loss of principal. Readers should independently evaluate the information, consider their own financial circumstances and investment objectives, and consult a qualified financial adviser before making any investment decision. Neither the author nor the publication assumes responsibility for any financial loss arising from reliance on the information presented in this article.