ICICI Bank reported the largest workforce reduction among India's major private sector banks in FY26, with its permanent employee count falling by 5,148 year on year, according to the bank's latest annual report.
The decline reverses the previous year's hiring trend and comes as several leading private lenders continue to invest in technology and digital capabilities to improve productivity and customer experience. Unlike some of its peers, ICICI Bank has not disclosed what drove the reduction in employee numbers.
Employee strength declines across categories
As of 31 March 2026, ICICI Bank employed 1,24,029 permanent employees, down from 1,29,177 a year earlier. The decline was spread across both male and female employees:
- Male employees: 84,244, down from 87,790.
- Female employees: 39,785, down from 41,387.
The reduction becomes larger when non-permanent workers, including interns and employees on fixed-term contracts, are included.
According to the annual report:
- Permanent employees: Declined by 5,148 to 1,24,029.
- Other than permanent employees: Fell by 1,485, from 1,780 to 295.
- Total workforce: Reduced by 6,633, from 1,30,957 in FY25 to 1,24,324 in FY26.
Hiring momentum reverses after FY25 growth
The latest figures mark a sharp turnaround from FY25, when ICICI Bank expanded its workforce.
The bank's annual report shows:
- Permanent employee strength increased by 6,731, rising from 1,22,446 in FY24 to 1,29,177 in FY25.
- Total employee strength, including non-permanent staff, grew by 6,958, reaching 1,30,957 in FY25 from 1,23,999 a year earlier.
The latest decline therefore follows a year of significant workforce expansion.
Largest reduction among major private lenders
Among India's four largest private sector banks, ICICI Bank recorded the biggest year-on-year reduction in permanent employees during FY26.
Employee changes reported by the banks were:
- ICICI Bank: -5,148 employees
- HDFC Bank: -3,343 employees
- Axis Bank: -3,100 employees
- Kotak Mahindra Bank: -1,269 employees
Together, the four lenders reduced their workforce by 12,860 employees during the financial year.
Annual report offers no explanation
Unlike several of its peers, ICICI Bank's FY26 annual report does not specify why employee numbers declined. The report does not identify:
- Any specific business vertical affected.
- Particular employee grades or functions involved.
- Workforce rationalisation or restructuring initiatives.
- Layoffs as a reason for the decline.
Media has sought clarification from the bank regarding the workforce reduction.
The annual report instead highlights ICICI Bank's continued focus on strengthening its digital capabilities, technology platforms and customer experience.
Peers point to technology-led productivity gains
While ICICI Bank has not explained the reduction, other private sector lenders have outlined how technology has influenced workforce planning.
HDFC Bank said it redeployed employees from back-office functions to customer-facing roles while using technology to improve efficiency. The bank stated that workforce reductions were limited to the non-supervisory cadre, while managerial headcount increased.
Axis Bank attributed its lower employee count to productivity improvements from technology investments. Executive Director Subrat Mohanty told ETBFSI that sustained digitisation and stronger branch productivity enabled headcount optimisation. Managing Director and CEO Amitabh Chaudhry also said in the bank's annual report that artificial intelligence is expected to deliver meaningful productivity gains over the next 18 to 24 months.
Kotak Mahindra Bank said it has centralised more than 200 branch processes into operations hubs. Managing Director and CEO Ashok Vaswani said the bank is optimising headcount through process simplification and technology while continuing to recruit for specialist roles in software engineering, cloud infrastructure, DevOps and artificial intelligence.
As banks continue to accelerate digital transformation, workforce strategies are increasingly reflecting a balance between technology-led efficiency and hiring for specialised digital skills. ICICI Bank's latest annual report signals a significant shift in employee numbers, although the factors behind the reduction remain undisclosed.