HDFC Bank sees employee attrition of around 30% in fiscal year 2023, says CFO

HDFC Bank witnessed highest attrition at the entry-level positions.

HDFC Bank, the country’s largest private sector bank, witnessed a 30 percent employee attrition in the fiscal year 2022-23, said Srinivasan Vaidyanathan, the bank's chief financial officer (CFO).

“On average, we saw the attrition rate at around 30 percent. Highest attrition was seen at the entry-level positions, which stood at around 40 percent to 50 percent,” Vaidyanathan said at a post-results media call.

Also read: HDFC Bank Q1 Results: Net profit jumps 30% to Rs 11,951 cr, maintains healthy asset quality

A few levels above the entry level, Vaidyanathan said that the attrition rate is around mid-20 percent to 30 percent.

To counter the high attrition rate, the bank is trying to make more training programmes.

"We are working on more training programmes for the employees. It is a work in process," Vaidyanathan pointed out.

On July 17, HDFC Bank reported a net profit of Rs 11,951 crore for the April-June quarter FY24, a jump from Rs 9,196 crore in the quarter ended June 30, 2022. The net profit slightly exceeded market expectations. At least four brokerages had predicted a net profit of Rs 11,581 crore whereas HDFC Bank reported a net profit of Rs 11,951 crore.

The bank's net interest income (NII) grew by 21.1 percent to Rs 23,599 crore from Rs 19,481 crore for the quarter ended June 30, 2022. Core net interest margin was at 4.1 percent on total assets, and 4.3 percent based on interest-earning assets.

The lender's gross non-performing assets (GNPA) ratio stood at 1.17 percent, improving from 1.28 percent in the corresponding period a year ago.

Similarly, the net NPA (NNPA) stood at 0.30 percent from 0.35 percent last year. The lender's net profit jumped from Rs 9,196 crore in the corresponding quarter last year to Rs 11,951 crore in Q1FY24.