Jobs alert! Indian banks set 10-year record with 123,000 hirings in FY23; hiring spree continues – Times of India

Indian banks have experienced a significant surge in hiring, reaching their highest hiring numbers in a decade in FY23. This trend is expected to continue in FY24, with top banking officials predicting further growth in headcount. The hiring spree is set to surpass the previous year’s record and potentially reach an all-time high, states an ET report.
According to the latest data released by the Reserve Bank of India, a collective of public and private sector banks hired a total of 123,000 employees last fiscal year, marking the highest annual net headcount addition in the past 10 years.
Private banks are leading the way in aggressive hiring, particularly in customer interface, lending, assurance, and technology functions. Their aim is to expand their branch network into tier 3 and rural areas.
Compared to FY22, net headcount addition in FY23 saw a remarkable 61% surge, resulting in a 7.4% year-on-year increase in total employee count, reaching 1.76 million. The banking sector witnessed its highest-ever annual net addition in FY11, with 125,000 new hires, followed by 124,000 in FY12.
Specialist staffing firm Xpheno conducted an exclusive study for ET and found that the top 15 private banks, including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, IDFC First Bank, Bandhan Bank, and AU Bank, added an average of 350 employees each working day of 2023.

“If we add the replacement hiring count, the onboards per day moves up to nearly 600 per working day,” explained Kamal Karanth, co-founder of Xpheno. “This level of talent action could well create the record for highest annual net headcount additions this fiscal,” Kamath said.

Banking officials anticipate that net staff additions this year will surpass the record high set in FY11.
Abheek Barua, chief economist at HDFC Bank, noted a slight shift among private banks from excessive reliance on digital platforms to traditional branch expansion. The rebound in retail credit, housing demand, and increased credit intensity in the economy have generated a significant demand for manpower in the banking sector.

“Banks are on a roll as credit intensity of the economy has picked up sharply,” added Barua.
Rajkamal Vempati, HR head at Axis Bank, stated that all banks are capitalizing on growth opportunities in emerging and rural India. After the fintech boom, banks are now focusing on expanding their presence in semi-urban and rural areas and SMEs are a key growth segment, he said.
There is a high demand for relationship managers, customer interface personnel, and branch network staff. Axis Bank aims to increase its manpower by 7-8% in the current fiscal year.
The intense competition for talent among major players has led to high attrition rates, resulting in a frequent need to fill vacancies. According to Xpheno data, the average attrition rate for the top 15 private banks over the last 12 months stands at 11%. This attrition-triggered replacement hiring counts for 70,000 positions.
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“Record high attrition numbers are prompting many banks to create a bench,” stated Barua.
HDFC, ICICI, and Bandhan Bank have disclosed their quarterly hiring numbers, revealing a combined net addition of nearly 40,000 employees in the first half of the fiscal year, as per Xpheno’s data. Private banks’ aggressive hiring spree coincides with state-run banks moderating their talent intake.
Madan Sabnavis, chief economist at Bank of Baroda, explained that private banks are implementing new strategies for physical branch expansion, while their public sector counterparts are focusing on digitization.