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

ICICI Bank has reported the lowest employee attrition rate among large private sector lenders in the last three financial years, reflecting higher stickiness due to competitive remuneration and a better working environment.

During the last three financial years, the industry has also witnessed a sustained decline on a year-on-year basis.

The employee attrition rate at the country’s second-largest private sector bank declined to 18% in FY25 from 24.5% in FY24, according to the bank’s latest Business Responsibility and Sustainability Reporting (BRSR) report.

During 2022-23, the bank reported an attrition rate of 30.9%, lower than its competitors.

Its larger peer, HDFC Bank, has recorded an employee attrition rate of 22.6% in FY25, compared to 26.9% in FY24. The attrition was 34.2% during 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 previous year, according to their annual and BRSR reports.

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

Over the past three years, from FY23 to FY25, private sector banks have seen a southward movement in their employee attrition rates.

The slowing attrition rate can be attributed to a combination of factors like a subdued entry-level job market in the BFSI and fintech industries and the growth of digital services, said a senior HR executive of a bank, requesting anonymity.

Most private sector banks went on a recruitment frenzy post-pandemic, which led to a high 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,” said a senior HR executive of a private sector bank.