Hiring in banking sector likely to grow 7%, NBFCs 5% in first half of FY25

Meanwhile, fintech exhibits the lowest growth among the mentioned sectors, with forecasted net employment growth of 4.89 percent, albeit still indicating a favorable hiring trend.

The banking sector is poised to experience the most substantial net employment growth at an impressive 7.21 percent, positioning it as the leader in employment expansion within the banking, financial services and insurance (BFSI) sector, according to a report.

The ‘Employment Outlook Report’ for the first half of fiscal 2025 (April 2024 to September 2025) by TeamLease Services, revealed that NBFCs (Non-Banking Financial Companies) are expected to witness significant employment growth with a projected net increase of 5.41 percent, signifying their ambitious workforce expansion plans.

The insurance sector is projected to show steady growth, with a net employment increase of 5.25 percent, reflecting the industry's focus on meeting requirements in regulatory compliance, cybersecurity, and heightened customer engagement.

Fintech shows the lowest growth among these sectors, with a projected net employment growth of 4.89 percent, though it still indicates a favourable hiring trend. This growth is attributed to the rise of UPI and the expansion of the open banking ecosystem.

Regarding employers' intent to calibrate the workforce sizes, NBFCs demonstrate the highest propensity to expand their workforce. The findings of a survey-based report reveal that 65 percent of respondents plan to increase their workforce, while 16 percent intend to reduce it, and 19 percent anticipate no change. These results underscore the dynamic growth of the BFSI sector and its pivotal role in extending credit to the MSMEs.

Consequently, the industry's revenue exceeded Rs 320 billion in FY24. Within the banking sector, 60 percent of respondents express plans to grow their workforce, while 20 percent intend to downsize it, and an additional 20 percent foresee no changes.

The banking industry is positioned for growth, seen by the credit growth for Scheduled Commercial Banks, which reached an 11-year high of 15.4 percent in FY23, compared to 10 percent in FY22, as well as achieving a three-year-high credit-deposit ratio of 75.8 percent. These indicators reflect robust economic activity and borrower confidence.

The fintech sector looks balanced, according to the report. Around 57 percent of respondents plan to increase their workforce, 20 percent intend to decrease it, and 23 percent foresee no change. The sector's growth is driven by innovations in digital payments and personalised financial product development.

The insurance sector also shows a moderate intent to grow, with 56 percent of respondents planning to increase their workforce, 19 percent intending to decrease it, and 25 percent seeing no change.