Now Reading: Top private banks cut 10,000 jobs as NBFCs add staff
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Top private banks cut 10,000 jobs as NBFCs add staff
India's top 10 private banks cut a combined 10,114 employees in FY26, marking the second consecutive year of workforce reduction, according to data from annual reports compiled by The Economic Times. The workforce fell to 739,452 from a peak of 759,203 two years earlier. ICICI Bank recorded the steepest decline of 6,633 employees, followed by HDFC Bank (3,346), Axis Bank (3,116) and Kotak Mahindra Bank (1,269).
The reductions were partly offset by hiring at midsize lenders such as Federal Bank, IndusInd Bank and Yes Bank. Banks cited automation and AI as drivers: Axis Bank executive director Subrat Mohanty said technology investments are delivering productivity gains, with AI benefits yet to fully show in headcount reduction. Meanwhile, the top four lenders expanded branch networks by 1,289 locations, indicating a decoupling of branch growth from hiring.
In contrast, five of six major non-banking financial companies expanded their workforce in FY26. Bajaj Finance led with an increase of 46,627 employees to 155,369, though this includes 36,402 contractual workers transitioned from outsourced roles. Public sector bank hiring during the year more than offset the private-sector job disruption, the ET synopsis noted, adding that strong credit growth and RBI oversight are expected to moderate AI-related displacement.
Indian Opinion Analysis
The three ET sources together tell a coherent story of private banks trimming headcount while NBFCs and PSU banks hire, with AI as the stated driver. The HR-focussed source leads with the stark job-loss number (10,000+ cuts at top private banks), giving the story a disruptive edge. The BFSI source balances this by showing NBFCs, especially Bajaj Finance, adding tens of thousands of roles, framing the shift as a sector-wide reallocation rather than a net loss. The third source, a synopsis piece, explicitly moderates the alarm, arguing AI will reshape jobs, not eliminate them, and points to PSU hiring and credit growth as buffers. None of the sources are critical of the government or RBI, they take a neutral-report stance on the policy environment. A careful reader should note that the 10,000 figure refers only to the top 10 private banks, and that Bajaj Finance's large addition includes a one-time reclassification of contractual workers. The real question is whether AI-led attrition will accelerate as those productivity gains Mohanty predicted materialise.
Coverage: 3 sources, 3 neutral
Sources (3): hr.economictimes.indiatimes.com (neutral report), bfsi.economictimes.indiatimes.com (neutral report), economictimes.indiatimes.com (neutral report)
This story was synthesised by AI from the 3 sources linked above. Methodology and corrections.
Updated: this story now draws on 3 sources.
