Kotak Bank’s employee turnover rises to 46% FY23 from 29% FY21

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Kotak Mahindra BankThe employee turnover rate increased steadily and reached 45.9 percent in FY23 from 39.0 percent in FY22 and 28.8 percent in FY21, reflecting a large headcount.

The decrease was almost fair for male and female employees, as 45.3 percent of male and female employees exited the Bank in FY23.

In comparison, 38.7 percent of male employees and 40.0 percent of female employees left in FY22, while 28.9 percent of male employees and 28.8% of female employees left the bank in FY21, according to the annual report for FY23.

The bank said permanent employee turnover includes employee turnover due to death, retirement, disciplinary action, and unfortunate exits by low-performing employees.

Most of the decrease in FY23 was in the under-30 age group, with 14,175 or 58.2 percent of the workforce leaving the bank. The turnover rate in the 30-50 age group was 36.6 percent with 9,728 employees leaving, and for the over-50 sector it was 13.8 percent with 18 employees.

During the year, the Bank recruited 32,080 new employees in the age group less than 30 years, of whom 73 were in middle management, 20,089 were junior employees, and 11,916 were fixed-term contract employees.

Moreover, it has employed 14,614 people in the 30-50 age group, of which 21 are senior management, 1,538 are middle management, and 9,947 are junior employees. Male employees were hired for all 23 senior management positions.

Because of the smaller base, the employment rate for female employees was higher at 67.6 per cent with 13,104 women hired, while the employment rate for male employees was slightly lower at 62.1 per cent with 33,607 males hired.

Kotak had 73,481 employees as of March 2023, of which 56,115 are permanent employees. In the report, the bank said it continues to review talent at the leadership level and put forward several interventions to build the future leadership capacity of key talents.

Last week, Businessline reported that Axis Bank had seen its tapering increase, with employee turnover rising to 34.8 percent in FY23 from 31.6 percent in FY22 and 19.1 percent in FY21. This is despite The bank has absorbed more than 97 percent of Citi’s 3,200-strong staff following the acquisition of Citbank India’s consumer business as of March 2023, according to data in the bank’s annual report for fiscal year 23.