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Axis Bank faces attrition surge despite Citibank acquisition
July 12, 2023
Axis Bank witnessed a notable increase in its attrition rate during the fiscal year 2022-23, with the employee turnover rising to 34.8 per cent, compared to 31 .6 per cent in FY22 and 19.1 per cent in FY21, according to the bank’s annual report. Surprisingly, this occurred despite the bank’s absorption of over 97 per cent of Citibank India’s employees, totaling 3,200 individuals, following acquisition of Citibank India’s consumer business in March 2023.
The data suggests that the majority of the turnover was observed within Axis Bank’s existing employee base, rather than among the acquired workforce, according to reports. In FY23, the attrition rate for female employees stood at 35.9 percent, while for male employees it was 34.4 per cent.
As of March 2023, Axis Bank employed a total of 91,898 permanent staff, including 68,308 male employees and 23,587 female employees. This marked an increase from the 85,815 permanent employees in March 2022. Notably, the bank recorded an attrition rate of 33.2 per cent for female employees and 31.1 per cent for male employees during FY22.
The 21-30 years category exhibited the highest attrition rate at 24 per cent, followed by the 31-44 years category at 14 per cent, and the 45-59 years category at 8 per cent.
During FY23, the median remuneration of employees rose by 7.6 per cent compared to the previous year’s 6.2 per cent, resulting in staff costs increasing by 16 per cent year-on-year to reach ₹8,797 crore. It is important to note that these figures only include one month’s expenses related to the 3,200 Citi employees who joined Axis Bank from March 1.
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