ICICI Bank Achieves Lowest Attrition Rate in 3 Years Among Large Private Lenders

A steady decline in employee attrition has placed ICICI Bank ahead of other major private sector lenders over the last three financial years. The bank’s latest Business Responsibility and Sustainability Reporting (BRSR) report highlights improved staff retention, driven by competitive remuneration and a supportive work environment.

ICICI Bank’s Employee Attrition at a 3-Year Low

In FY25, ICICI Bank reported an attrition rate of 18%, down from 24.5% in FY24. This marks a consistent improvement from 30.9% in FY23, when the bank already held an advantage over many of its peers. The trend underscores the bank’s ability to retain talent through stronger engagement and retention initiatives.

Peers Also Report Declining Attrition Rates

As per the reports, Other large private sector banks have also seen reduced attrition over the same period. HDFC Bank reported 22.6% in FY25, compared to 26.9% in FY24 and 34.2% in FY23. Axis Bank’s attrition rate stood at 25.5% in FY25, down from 28.8% in FY24. Kotak Mahindra Bank’s exit rate fell to 33.3% from 39.6%, while IndusInd Bank recorded 29% in FY25, a sharp drop from 37% in FY24 and 51% in FY23.

A Sector-Wide Shift in Employee Retention

Between FY23 and FY25, private sector banks have experienced a consistent decline in attrition rates. Industry specialists attribute this shift to reduced entry-level hiring in the banking, financial services, and insurance (BFSI) industry, slower expansion in the fintech space, and the broader adoption of digital services.

Influence of Post-Pandemic Hiring Patterns

Following the pandemic, private sector banks ramped up recruitment to address increased service demands. This surge initially pushed attrition rates higher as employees switched jobs frequently for better opportunities. However, with the market now more stable, attrition has eased, signalling improved retention strategies across the sector.

Read More: TCS, Infosys, HCL Tech & Wipro: A Quick Look at Attrition Rates and Headcount in Q1FY26! 

Conclusion

The sustained fall in attrition across private sector banks highlights a stabilising job market and stronger employee retention practices. ICICI Bank’s performance stands out as a benchmark in this trend.

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