While HDFC Bank reported a marginal increase in employees in the quarter to December 2025, both Axis Bank and Kotak Mahindra Bank saw a decline in headcount.
HDFC Bank added about 5,000 employees during the quarter, taking its headcount to around 2,15,000. By contrast, Axis Bank saw a marginal contraction in employee strength to about 1,01,000 at the end of December from around 1,02,000 a year earlier. Kotak Mahindra Bank, too, reported a decline in headcount, to about 1,12,000 in December 2025 from 1,14,000 in the March quarter, underscoring a broader shift toward cautious hiring and productivity-led growth across the banking sector.
ET Bureau & AgenciesHowever, the small increase in workforce at HDFC Bank came after recruitment at the bank fell sharply in 2024-25 to 49,713 from 89,115 in 2023-24 and more than 85,000 in 2022-23. Net additions plunged to 994 employees in 2024-25, compared with 40,305 in 2023-24 and 31,646 in 2022-23. However, the pace of opening new branches did not decline as drastically. In 2024-25, the lender added 717 branches, compared with 917 in 2023-24 and 1,479 in 2022-23.
While December quarter numbers for ICICI Bank were not available, data up to March 2025 showed its headcount declined to 1,30,957 in 2024-25 from 1,41,009 a year earlier, with a net reduction of 6,723 employees. This followed additions of 9,240 employees in 2023-24 and 20,816 in 2022-23. The bank added 460 branches in 2024-25, compared with 623 in the previous fiscal. State Bank of India also pared hiring, adding 1,770 employees in 2024-25, down from 10,661 in 2023-24 and 8,595 in 2022-23. Axis Bank scaled back as well, hiring 31,674 employees in 2024-25 versus 40,724 in the previous year.
Bankers attribute the slowdown largely to digitisation and productivity gains. “We have a lower average headcount given the productivity gains we have started to see from some of our past investments,” said Puneet Sharma, chief financial officer at Axis Bank. “These improvements are arising from technology investments and better business growth. You are seeing more efficient headcount utilisation, even as we continue to invest in assurance functions.”
Banks are increasingly relying on digital onboarding, automated credit underwriting, AI-driven customer service and centralised operations, reducing dependence on large frontline and back-office teams. Combined with tighter cost discipline and slower branch expansion, these changes are reshaping workforce trends across major lenders.
“Slower retail loan growth, better attrition control, reduced operating costs and increased use of digital channels are lowering the need for mass frontline hiring,” said Prakash Agarwal, partner at Gefion Capital. “Hiring is becoming more selective, with a focus on technology, risk, analytics and compliance rather than bulk onboarding.”