ICICI sees biggest workforce decline among private banks in FY26
What's the story
ICICI Bank, India's second-largest private sector lender, has seen a major dip in its workforce strength during the fiscal year 2026. The bank's permanent employee count, including those at overseas locations, fell by 5,148. The total employee count stood at 124,029 as of March-end compared to last year's figure of 129,177. This is the largest decline among large private sector banks in India for FY26.
Workforce shift
Job cuts despite branch expansion
The reduction in employee strength comes even as ICICI Bank opened 528 new branches in FY26, taking its total network to 7,511 branches by March-end 2026.
The bank's latest annual report emphasized its commitment to supporting employees through various initiatives such as structured learning programs and health and wellness programs.
These measures are aimed at creating an environment where every colleague feels valued and empowered.
Industry trend
Other banks also reduce employee strength
ICICI Bank isn't the only one witnessing a dip in its workforce.
HDFC Bank and Axis Bank have also trimmed their teams by thousands while adding branches.
HDFC Bank's employee count fell by 3,343 during FY26 to 211,178 from last year's figure of 214,521.
Meanwhile, Axis Bank's headcount dropped to just over 101,300 in FY26 from last year's figure of 104,453, a reduction of about 3,153 employees.
Tech impact
Rise of automation in banking sector
The reduction in workforce at these banks can be attributed to the rise of automation.
Banks are now using technology for tasks like account opening and loan processing, which reduces the need for manual labor.
This shift also allows employees to focus more on sales and advisory roles, marking a change in job responsibilities rather than outright job losses.