ICICI Bank reports lowest attrition rate among private peers in last 3 fiscal years

ICICI Bank has reported the lowest worker attrition rate among giant private sector lenders in the last three monetary years, reflecting greater stickiness as a consequence of aggressive remuneration and a greater working atmosphere.

During the last three monetary years, the trade has additionally witnessed a sustained decline on a year-on-year foundation.

The worker attrition rate on the nation’s second-largest private sector financial institution declined to 18% in FY25 from 24.5% in FY24, in response to the financial institution’s newest Business Responsibility and Sustainability Reporting (BRSR) report.

During 2022-23, the financial institution reported an attrition rate of 30.9%, decrease than its rivals.

Its bigger peer, HDFC Bank, has recorded an worker attrition rate of twenty-two.6% in FY25, in comparison with 26.9% in FY24. The attrition was 34.2% throughout 2022-23.

Similarly, the attrition was 25.5% for Axis Bank, down from 28.8% in FY24, and Kotak Mahindra Bank’s manpower exit rate fell to 33.3% from 39.6% in the earlier yr, in response to their annual and BRSR reports.

For IndusInd Bank, the attrition rate was 29% in FY25, decrease than 37% witnessed throughout 2023-24 and 51% in FY23.

Over the previous three years, from FY23 to FY25, private sector banks have seen a southward motion in their worker attrition charges.

The slowing attrition rate may be attributed to a mix of things like a subdued entry-level job market in the BFSI and fintech industries and the expansion of digital providers, stated a senior HR government of a financial institution, requesting anonymity.

Most private sector banks went on a recruitment frenzy post-pandemic, which led to a excessive attrition rate subsequently.

“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,” stated a senior HR government of a private sector financial institution.