Mumbai headquartered banking and financial services company, Axis Bank, is making ‘constant efforts’ to check the high attrition rate as it saw employee attrition of 34.8 percent in FY23, said Amitabh Chaudhry, the private lender’s Managing Director and Chief Executive Officer on July 26.
Axis Bank Witnesses Higher Attrition Rate
The reported 34.8 percent rate of attrition was much higher than Axis Bank’s FY22 and FY21 attrition which stood at 31.6 percent and 19.1 percent, respectively.
During a post-results media call, Chaudhry highlighted that attrition is an industry-wise issue and Axis is making efforts to work on the same.
Chaudhry said, “Attrition is an industry-wise issue. We are constantly working to make more efforts to work on less attrition, but it is the reality of the industry.”
Adding, Axis Bank has seen maximum attrition at around 33-35 percent at the junior and branch level.
Earlier, around 3200 employees joined the company, after the acquisition of Citi Bank India’s retail operations.
Briefing on the subject, Chaudhry said that attrition of these employees is lower than what it was in CitiBank India.
Lower Attrition With Citi Bank Employees
Chaudhry said, “Attrition of the Citi Bank employees is lower at Axis Bank than in the past three years in CitiBank India.”
The lender saw its attrition in FY23 at 34.8 percent, in the annual report of the bank.
This is higher than FY22 and FY21 when the attrition rate was at 31.6 percent and 19.1, respectively.
On July 26, the private lender reported a 40 percent rise in net profit to Rs 5,790 crore for the April-June FY24 quarter from Rs 4,125 crore last year.
The bank was expected to report a net profit of Rs 5,889 crore, in a poll of three brokerages conducted by Moneycontrol.
It appears that the lender missed analyst expectations.
Axis bank’s net interest income (NII) grew 27 percent year-on-year (YOY) to Rs 11,959 crore.
Its Net interest margin (NIM) for Q1FY24 stood at 4.10 percent, up 50 bps YOY.
Further, the gross non-performing assets (GNPA) of the bank declined to 1.96 percent as compared with 2.76 percent last year.
