Private Bank Hiring Slows in FY25 as Tech Spend Grows
Why in the news
HDFC Bank and ICICI Bank cut back hiring in FY25 even while adding branches, pointing to technology-led efficiency.
Key facts
- Reasons given by Macquarie’s Suresh Ganapathy: productivity gains, leaving posts of resigning staff vacant, and greater AI and technology use.
- ICICI Bank doubled tech’s share of operating spend from 5% to 10.5% over five years; absolute tech spend is 4x.
- SBI’s staff fell from 249,448 (FY20) to 232,296 (FY24), a loss of 17,152.
Outlook
- RBI data shows private banks’ workforce grew 2.78x over a decade, yet hiring has now plateaued.
- Analysts will watch Axis Bank, SBI and others’ Q4 FY25 results to see if the trend spreads.
Exam angle
- Recall: ICICI tech share 5% to 10.5%.