Private Bank Recruitment: Over 50,000 junior officers to be hired to battle FY23 attrition

Bank Recruitment: Private banks are looking to hire over 50,000 employees for entry-level roles over the coming year to battle high attrition rate, reported Mint. As per the report, the lenders are facing infant mortality, which means just-recruited employees leaving for logistics, delivery-services and other firms.

Since recruiting from the markets is expensive, the banks are hiring from campuses in large numbers.

“Banks will hire about 50,000 people in junior positions, including from campuses, over the next one year," Upasana Agarwal, partner (professional and financial services), ABC Consultants told Mint. ABC Consultants is an executive search and talent advisory firm.

Attrition Rate

Mint further quoted Agarwal and said that the attrition at the juniormost levels can be as high as 50-60%. “Attrition at the juniormost levels can be as high as 50-60% and campus hiring enables a firm to be talent-ready. These models allow hiring in bulk rather than bringing talent in a fragmented manner," Agarwal told Mint.

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While HDFC bank the largest private sector lender in India saw an attrition rate of 34.15% in FY23 so far, IndusInd Bank saw 51% attrition and ICICI Bank 30.9%. Mint quoted experts and said that the impact of attrition is more potent in the long term than in the short term.

“While it is difficult to dissect the impact of such things on the short-term performance of an institution, in the long term it can potentially impact the quality of the talent pool within the organization, its growth and profitability prospects," Anil Gupta, senior vice-president and co-group head, Icra told Mint.

Private Bank Hiring

The report quoted Axis Bank's Human Resource president and head Rajkamal Vempati who said that the private bank is planning hire about 12,000 from campuses from the batch of 2024. This is 4 times more than last year when it hired only 3,000 people from campus and academic programs.

“Axis Bank will hire about 12,000 from campuses from the batch of 2024 – four times more than last year. This is across tier 1, 2 and 3 institutions. For every skill we have a campus feeder programme," Rajkamal Vempati, president and head of human resources, Axis Bank told Mint.

The spike in hiring will be seen in profiles such as lending, corporate and branch banking, as well as roles in information technology (IT) and analytics.

As per banking recruiters quoted by Mint, banks are offering about ₹5 lakh in tier 2 and 3 colleges, and this can rise to ₹8 lakh if the candidate has digital skills. Salaries in premier business schools range from ₹20-30 lakh and those in the better-known engineering colleges range from ₹15-20 lakh