Mumbai: The impact of technology and automation is now clearly visible in India’s banking sector. Leading private lenders Axis Bank, HDFC Bank, and RBL Bank have reported a notable reduction in their employee strength during financial year 2025-26 (FY26). This decline comes at a time when the banking industry is rapidly adopting digitalisation and artificial intelligence-based systems.
According to reports, Axis Bank reduced its workforce by over 3,100 employees in FY26. The bank’s total staff strength stood at 104,400 in FY25, which fell to 101,300 in FY26. The reduction was gradual throughout the year, indicating operational changes driven by technology adoption.
Similarly, HDFC Bank, India’s largest private sector lender, also reported a reduction of 3,343 employees. Its workforce declined from 214,521 in FY25 to 211,178 in FY26. In the same period, RBL Bank cut 949 employees, bringing its staff strength down from 14,265 to 13,316.
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Technology Gains
A senior executive from Axis Bank’s banking operations and transformation team said that sustained investments in technology are now delivering visible productivity gains. According to him, digital investments made over the past few years are significantly improving efficiency, making several processes faster and more streamlined.
He also noted that the bank added around 400 new branches during the same period, highlighting that despite a reduction in headcount, both operational efficiency and outreach have improved. Training initiatives, digital tools, and employee enablement have contributed to continuous productivity growth across operations.
Meanwhile, employment experts believe that the changes in the banking sector are largely driven by automation rather than artificial intelligence alone. Digital banking services, automated call systems, and technology-driven processes are reducing the need for several traditional roles, particularly in sales and customer support functions.
However, banking institutions maintain that these changes are aimed at improving efficiency and enhancing customer service. They emphasise that while workforce adjustments are taking place, there has been no significant reduction at the branch level. Instead, technology’s impact is more visible in backend operations and processing functions.
Overall, the FY26 trend highlights that the Indian banking sector is rapidly transitioning toward a technology-driven model, where the role of human resources is evolving, and digital systems are increasingly taking centre stage in core operations.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
