ICICI Bank attrition: Private lender marks its lowest headcount drop in last three years. Here's why
ICICI Bank's employee attrition rate dropped to 18% in the financial year 2024-25, compared year-on-year (YoY) with 24.5% in the previous financial year, cited the news agency from the bank's Business Responsibility and Sustainability reporting (BRSR) report.
According to the agency report, over the last three financial years, India's banking sector witnessed a sustained decline on a year-on-year basis. In the 2022-23 fiscal year, ICICI Bank's attrition rate was at 30.9%, lower than its competitors.
Competitors of ICICI Bank, like the largest private sector bank in India, HDFC Bank, recorded an employee attrition rate of 22.6% during the 2024-25, compared to its level of 26.9% in the previous financial year.
Other private sector banks, such as Axis Bank, Kotak Mahindra Bank, and IndusInd Bank, also recorded a drop in their attrition rates for the 2024-25 fiscal year.
Axis Bank witnessed an employee attrition rate of 25.5% in the financial year 2024-25, a drop from its previous level of 28.8% in the previous financial year, the news agency cited the bank's BRSR report.
Kotak Mahindra Bank's attrition rate also dropped to 33.3% in the 2024-25 fiscal year, compared to 39.6% in the previous financial year. IndusInd Bank's employee attrition rate also dropped to 29%, compared to 37% in the financial year 2023-24, reported the news agency.
Over the last three years, the attrition rate among the private banks has seen a downward movement between the financial year 2022-23 and the 2024-25 fiscal year.
The drop in the employee attrition rate among private banks can be attributed to factors like 'subdued entry-level' job market in the BFSI and fintech sector and the rise in digital services, reported the news agency, citing a senior HR executive of the ICICI Bank aware of the development.
"Now, the market appears to be stabilised, meaning banks are not heavily recruiting and the entry-level employees are not leaving banks to join fintech companies," the executive told the news agency, highlighting that most private sector banks witnessed high attrition rates due to the high level of recruiting after the Covid-19 pandemic of 2020.
Mint reported earlier that ICICI Bank's net profit rose 15.5% to ₹ 12,768 crore in the April-June quarter of the 2025-26 fiscal year, compared to ₹ 11,059 crore in the same quarter a year ago, according to company filings.
The private sector bank's interest income rose 10.1% to ₹ 42,946.9 crore in the first quarter of the financial year ended 2025-26, from ₹ 38,995.7 crore in the same period a year ago.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scroll.in
6 minutes ago
- Scroll.in
Retail inflation eases to eight-year low of 1.55% in July
India's retail, or consumer price index inflation, fell to an eight-year low of 1.55% in July from 2.10% in the previous month, according to data released by the Ministry of Statistics and Programme Implementation on Tuesday. Retail inflation measures the change in consumer prices in a month on a year-on-year basis. The Reserve Bank of India is tasked with keeping inflation at 4%, with a tolerance band between 2% and 6%. This is the first time since the Covid-19 pandemic that the country's retail inflation has fallen below this tolerance band, Reuters reported. The Centre attributed the decrease in headline and food inflation in July to lower price rise in pulses, vegetables, eggs, sugar, transport and communication. Data from the government that was released on Tuesday has also shown that inflation in India has been easing for nine consecutive months, which will allow the Reserve Bank of India's Monetary Policy Committee to further cut interest rates. On August 6, the Reserve Bank of India's Monetary Policy Committee decided to keep the repo rate unchanged at 5.5%. The repo rate is the interest rate at which the central bank lends money to commercial banks. The Monetary Policy Committee reviews the rate every two months. Central banks typically increase key lending rates at times of high inflation in economies. Higher key lending rates translate into high interest on loans disbursed by commercial banks. This, in turn, keeps a check on discretionary spending by consumers.
Time of India
15 minutes ago
- Time of India
Flights to China to resume soon? Govt asks airlines to prepare routes; announcement likely at SCO meet, says report
Representative image NEW DELHI: India and China are moving closer to restoring direct passenger flights as early as next month, Bloomberg reported sources familiar with the negotiations as saying, in a sign the two nations are seeking to mend strained ties. However, Bloomberg stated that neither the aviation ministry, the Directorate General of Civil Aviation, nor the Press Information Bureau responded to its requests for comment. According to the report, the government has asked domestic airlines to be ready to operate flights to China at short notice. An official announcement could come around the Shanghai Cooperation Organisation (SCO) summit, which begins August 31 in Tianjin and is expected to be attended by Prime Minister Narendra Modi and Chinese President Xi Jinping. Direct passenger services between the two countries have been suspended since the Covid-19 pandemic, forcing travelers to transit through hubs such as Hong Kong or Singapore. The renewed push comes as New Delhi's relations with Washington face pressure, following US President Donald Trump's decision to double tariffs on goods to 50% over its purchases of Russian oil, Bloomberg reported. Diplomatic relations between India and China hit a low in 2020 after deadly border clashes in Ladakh killed 20 soldiers and an undisclosed number of Chinese troops. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo India recently eased restrictions on tourist visas for Chinese nationals after years of curbs. Before the suspension, carriers including Air India , IndiGo , Air China, China Southern, and China Eastern operated routes between major cities. The sources cited by Bloomberg said both Air India and IndiGo are likely to restart services if flights resume. While both countries had announced plans to restore direct flights earlier this year, progress stalled amid renewed tensions. Talks have gathered momentum over the past two weeks, but Bloomberg's sources cautioned that the timing could still shift if negotiations face setbacks. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Time of India
23 minutes ago
- Time of India
MFIN seeks credit guarantee support from government to boost bank lending to sector
Microfinance Industry Network ( MFIN ) has sought credit guarantee support from the government to ensure that banks get comfort in lending to the sector. There is a need for a "leap of faith", which will ensure funding to MFIs and start a virtuous cycle that will help economic activity as well, the self-regulatory organisation's (SRO) chief executive Alok Misra told reporters here. Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program Misra said NBFC-MFIs are dependent on bank lending for almost two-thirds of their resources, and added that banks are showing some reluctance to lend to the sector, leading to "severe liquidity constraints ". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 most beautiful women in the world Undo "Once (bank) funding starts, disbursements (by MFIs) will improve," Misra said, pointing out that the gross loan portfolio for all microlenders has declined by nearly 17 per cent in the three months to June to Rs 3.53 lakh crore, and the number of borrowers has fallen 6 per cent to 7.5 crore. MFIN has written to the government in mid-July seeking a Rs 15-20,000 crore credit guarantee scheme for the sector, where the government guarantees up to 75 per cent of an MFI's borrowings from banks and the banks get the comfort to lend, he said. Live Events Pointing out that a similar scheme was implemented successfully during the Covid period in 2021, he said the Rs 7,500 crore fund for the purpose by the government was not utilised as all the MFIs paid their dues. Misra said that MFIs will be meeting top Finance Ministry officials next week to discuss the proposals and follow up by meeting bank chiefs. He also said that the refinance by state-owned Sidbi and Nabard has not been very high in the sector lately and appealed for help on that. Acknowledging that the MFI sector has had a challenging time for the last year, Misra said there are improvements in the sector lately, with the gross non-performing assets ratio of loans overdue for over 90 days reducing to 3.2 per cent in June from 3.5 per cent in March this year. The collection efficiencies are also improving, he said, pointing out that MFIs' collections have gone up to over 98 per cent now from 95 per cent in January this year. He said there are no issues in Tamil Nadu , despite the state moving an ordinance, which was feared to impact the sector, and added that in the case of Karnataka that undertook a similar move, there is an improvement, with the proportion of loans overdue for up to 180 days, declining to 6.08 per cent from 9 per cent six months ago. Denying the RBI's charge of the sector indulging in usurious interest rates from borrowers, Misra said the weighted average lending rate was 23.66 per cent in June and has been "range-bound" for the last few quarters. Stating that sometimes statements are made, which are not in line with the facts, Misra claimed that even the outlier MFI will not charge an interest rate of over 27.5 per cent. The return on equity is a low 10 per cent because of the interest rates charged, due to which investors can become wary of entering the sector, he said, welcoming the faith shown by some investors by putting fresh equity in the sector. The problems faced by the sector are neither cyclical nor structural, he said, stressing that the sector plays a very important role in the overall economic activity and contributes upwards of 2.5 per cent to the gross value added. He dismissed concerns about the upcoming state elections in Bihar, one of the biggest states for the industry, that may affect the industry in any way.
