Axis Bank workforce drops by 3,000 despite branch expansion

Axis Bank reported a decline of around 3,000 employees in the financial year 2025–26, even as it expanded its physical network.

The bank’s total workforce stood at about 1.01 lakh at the end of FY26, down from 1.04 lakh a year earlier. The reduction, the lender said, was broad-based and not linked to any specific business segment.

Technology focus drives efficiency gains

Speaking during a post-earnings conference call, managing director and chief executive Amitabh Chaudhry said the decline reflects the bank’s sustained focus on digital transformation, according to IANS.

He noted that consistent investments in technology over several years are now improving operational efficiency and employee productivity across the organisation.

“Headcount optimisation is a natural outcome” of this long-term strategy, Chaudhry said, indicating that efficiency gains are beginning to translate into workforce rationalisation.

The bank has allocated between 9 per cent and 10 per cent of its operating expenditure to technology over the past three to four years, he added, with investments made irrespective of business cycles to build a structural advantage.

Expansion continues alongside workforce reduction

The decline in employee numbers comes even as Axis Bank expanded its physical footprint. The lender added nearly 400 branches during the year, requiring fresh hiring and training alongside ongoing digitisation initiatives

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The bank maintained that its approach balances branch expansion with technology-driven efficiency improvements, reflecting a hybrid operating model.

Limited role of AI in workforce changes

Despite the focus on automation, Axis Bank indicated that artificial intelligence has not yet played a significant role in reducing headcount.

At present, AI tools are primarily used to streamline processes and shorten transaction timelines rather than replace jobs, according to IANS.

On the financial front, Axis Bank reported a largely flat performance for the March quarter, posting a profit of Rs 7,071 crore compared with Rs 7,117 crore in the same period last year.

The bank also declared a dividend of Rs 1 per share for FY26, as per its stock exchange filing.