In the last financial year, Axis Bank reported a decline in its total workforce by about 3,000. While the headcount was at around 1.04 lakh a year earlier, it declined to 1.01 lakh by the end of March 2026. This translates into a decline of 2.8 percent in the workforce in a year.
However, one of India’s largest banks said that the decline in workforce was not a result of a restructuring exercise but an outcome of improved efficiency and higher productivity of the existing employees.
This has allowed the bank to reduce incremental hiring. Axis Bank’s Managing Director and Chief Executive Officer, Amitabh Chaudhry, said that the lender had been investing in technology for the last three to four years, which has resulted in reduced staffing needs.
“The trend of headcount optimisation continues because the investments that we have made in technology over the years are starting to give us benefits in terms of productivity gains,” Chaudhry said during an earnings call on Saturday.
He said that during the last few years, the bank has ensured that 9-10 percent of its expenditure went into technological advancement of processes.
Those investments are now resulting in streamlined processes, improved productivity, and reduced staffing needs.
The bank said that the use of artificial intelligence has not resulted in job replacements so far. The technology is currently being used to fast-track processes and accelerate end-to-end transactions.
It said that technological improvements would continue to deliver operational benefits to the bank for the coming 18 to 24 months.
The bank also clarified that the reduction in headcount was not concentrated in a particular segment but spread across the board.
While its headcount has reduced, the bank has continued to expand its physical network. It opened about 400 branches across the country during the last financial year.
In the March quarter, Axis Bank reported a muted show, with net profit of Rs 7,071 crore compared to Rs 7,117 crore in the same quarter last year.
