Story Content

The largest private banks of India are undergoing a workforce transformation as IT becomes key. Axis Bank has been shedding more than 3,100 jobs in FY26, with its workforce falling from 1.04 lakh to 1.01 lakh. Mumbai-based HDFC Bank, India's largest private sector bank, reduced its workforce by 3,343 to bring the number of employees from 2.14 lakh to 2.11 lakh. RBL Bank reduced its workforce by 949, bringing its strength down from 14,265 to 13,316.

Banks' senior officials said the decline has been a result of a long-term focus on building digital infrastructure, automation, and artificial intelligence, which has helped boost productivity and increase efficiency, particularly for back-office processing, customer service, and other non-judgmental roles.

In banks' view, the reduction is due to attrition and reduced new recruitment, rather than drastic cost-cutting. Despite these job cuts, some banks committed to opening new branches.

The development reflects the rise of IT automation and artificial intelligence (AI) in the Indian banking system, which is eliminating mundane jobs and increasing the demand for specialists in data analytics, cybersecurity, and digital transformation.