Banks ease pace of hiring as tech, AI shoulder more tasks

Core Insights - Hiring activity in Indian banks has slowed down due to increased adoption of technology, automation, and AI-led efficiencies, reducing the need for incremental headcount additions [7] - HDFC Bank added approximately 5,000 employees in the quarter, bringing its total headcount to around 215,000, while Axis Bank and Kotak Mahindra Bank experienced declines in their employee counts [7] - The overall trend indicates a cautious approach to hiring and a shift towards productivity-led growth across the banking sector [7] Group 1: Employment Trends - HDFC Bank's recruitment fell sharply in 2024-25 to 49,713 from 89,115 in 2023-24, with net additions dropping to 994 employees compared to 40,305 in the previous year [7] - Axis Bank's headcount decreased to about 101,000 at the end of December from around 102,000 a year earlier, while Kotak Mahindra Bank's headcount declined to about 112,000 from 114,000 [7] - ICICI Bank's headcount also saw a reduction, declining to 130,957 in 2024-25 from 141,009 a year earlier, with a net reduction of 6,723 employees [7] Group 2: Factors Influencing Hiring - The slowdown in hiring is attributed to digitisation and productivity gains, leading to more efficient headcount utilisation [5][6] - Banks are increasingly relying on digital onboarding, automated credit underwriting, AI-driven customer service, and centralised operations, which reduces the need for large frontline and back-office teams [5] - Hiring is becoming more selective, focusing on technology, risk, analytics, and compliance rather than bulk onboarding [6]