Axis Bank witnesses rise in attrition rate despite acquisition of Citibank India’s consumer business

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Axis bank It witnessed a tapering jump in FY23, as the employee turnover rate rose to 34.8 percent in FY23 from 31.6 percent in FY22 and 19.1 percent in FY21.

This is despite the fact that the bank has absorbed more than 97 percent of Citi’s 3,200-strong staff following the acquisition of Citibank India’s consumer business as of March 2023, according to data in the bank’s annual report for fiscal year 23.

This means that the bulk of the turnover is seen in the bank’s organic employee base. The turnover rate for female employees was 35.9 percent and for males 34.4 percent in FY23.

attrition rate

The total number of employees was 91,898 permanent employees as of March 2023, including 68,308 male and 23,587 female employees.

By comparison, it had 85,815 permanent employees as of March 2022, with the bank seeing an attrition rate of 33.2 percent in female employees and 31.1 percent in male employees during FY22.

In both years, turnover was highest for the 21-30 age group at 24 percent, followed by the 31-44 age group at 14 percent and the 45-59 age group at 8 percent.

Average employee wages increased by 7.6 per cent YoY in FY23 as against 6.2 per cent in FY22. This led to staff costs increasing by 16 per cent YoY to Rs.8,797 crore in FY22 23. This included only one month’s expenses related to the 3,200 Citi employees who joined the bank as of March 1.

Axis Bank said that 46 percent of the vacancies were filled with internal transfers through the bank and its subsidiaries during fiscal year 23.

“Given the strong integrated platform that we are building, we will continue to grow 400 to 600 basis points faster than the industry, in the medium to long term. The great strides we have made during the year are in the journey,” said Amitabh Chaudhary, Managing Director and Chief Executive Officer in the report. Our customer acquisition, digital capabilities, Bharat Banking and the successful acquisition of Citibank India Consumer Business gives us confidence in maintaining this performance.