Mumbai: ICICI Bank, India’s second-largest private sector lender, has once again emerged as the leader in employee retention among major private banks, recording the lowest attrition rate for the third consecutive financial year. According to the bank’s latest Business Responsibility and Sustainability Reporting (BRSR) report, attrition fell to 18% in FY25, a sharp improvement from 24.5% in FY24 and 30.9% in FY23.
The bank attributes this sustained improvement to a competitive remuneration framework, a better working environment, and long-term employee engagement strategies, leading to consistently higher “stickiness” among its workforce.
A Clear Gap With Competitors
In comparison, HDFC Bank, the country’s largest private sector lender, posted a 22.6% attrition rate in FY25, down from 26.9% in FY24 and 34.2% in FY23. Despite improvements across the sector, ICICI Bank continues to outperform its peers, maintaining a noticeable lead in staff retention.
Other major private banks showed declines but still operate at higher attrition levels. Axis Bank saw attrition reduce to 25.5% in FY25 from 28.8% in FY24, Kotak Mahindra Bank dropped to 33.3% from 39.6%, and IndusInd Bank improved to 29% from 37% over the same period.
Industry-Wide Decline in Attrition
The downward trend in attrition across private banking is being linked to multiple factors — a subdued entry-level job market in the banking and fintech sectors, the expansion of digital and remote working options, and stabilised recruitment practices after a post-pandemic hiring surge.
Many private banks have shifted focus to employee engagement and structured retention strategies to ensure experienced staff stay longer, driving operational stability and customer service continuity.
ICICI Bank’s Retention Strategy Pays Off
ICICI Bank’s HR strategy, combining attractive compensation, professional growth opportunities, and workplace well-being initiatives, has been instrumental in maintaining the lowest turnover rate. With talent competition intense in India’s banking sector, the bank’s strong retention record strengthens its appeal as an employer of choice and enhances its competitive positioning.
Conclusion: Setting the Industry Benchmark
By achieving the lowest attrition rate among major private sector peers for three straight years, ICICI Bank has reinforced its leadership not only in financial performance but also in talent management. As the banking industry continues to evolve, consistent workforce stability will remain a cornerstone of growth, service quality, and market competitiveness.
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