ICICI Bank reports lowest attrition rate among peers
What's the story
ICICI Bank has reported the lowest employee attrition rate among major private sector lenders for the last three fiscal years. The bank's latest Business Responsibility and Sustainability Reporting (BRSR) report shows that its attrition rate fell to 18% in FY25, a sharp decline from 24.5% in FY24. This decline reflects higher stickiness due to competitive remuneration and a better working environment at ICICI Bank.
Comparative analysis
Comparison with other major private sector banks
In FY25, ICICI Bank's attrition rate was significantly lower than its peers. HDFC Bank reported an employee attrition rate of 22.6% in FY25, down from 26.9% in FY24. Axis Bank's attrition rate also fell to 25.5% from last year's 28.8%. Kotak Mahindra Bank saw a similar trend with its manpower exit rate declining to 33.3%, down from last year's 39.6%. IndusInd Bank's attrition rate stood at 29% in FY25, a decline from last year's 37% and the previous year's 51%.
Other banks
Industry trends leading to slowdown in attrition rates
The trend of declining employee attrition rates among private sector banks has been observed over the past three fiscal years (FY23-FY25). The slowdown in attrition rates can be attributed to factors such as a sluggish entry-level job market in Banking, Financial Services and Insurance (BFSI) and fintech sectors, as well as the rise of digital services.