HDFC Bank’s staff strength came down from 90,421 to 84,325
HDFC Bank staff strength came down from 90,421 to 84,325 owing to increased digitalisation in the March quarter and it expects the trend to continue
There is a massive headcount drop in HDFC Bank in second quarter in a row that came down by 6,000 which in previous has been 90,421 to 84,325 owing to increase the digitalization in the March quarter and it is expected the trend to continue.
The senior management of second largest private lender hinted that this trend of falling staff strength may continue to greater efficiencies set in. The deputy managing director Paresh Sukthankar said to reporters in Mumbai that is really a function of…what is happening on our digital side. They believe that with increased digitization certain lines of transaction modes like counters, etc. have actually reduced.
During January-March of this year the banks headcount has been decreased by 6,096 from 90,421 to 84,325 which has been one of the main drivers for the enormous improvement in the cost-to-income ratio to 42.4% from 44.9% a year ago.
During October-December 2016 quarter, the headcount has came down by 4,581 employees, which has helped in the cost-to-income ratio improve to 43.8%. Sukthankar clarified that while bringing digital technologies to our bank there helped the bank to introduce some products like instant personal loans, help reduce reliance on people and network expansion requires additional manpower.
He said that “Natural attrition” had led to drive down the total number of employees and also mentioned that newer hands are not hired as replacements for those who have resigned.
It is known that the attrition level per year is 21-22% which is within the industry average. The bank’s staff strength has reached to peak at 95,002 employees in September 2016. In fiscal 2017, the bank has declined the headcount by 3,230 to 84,325, while the same had increased by 10,729 in the earlier fiscal.