India's four major private banks have reduced their employee numbers even as they continued to open new branches. ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank together cut around 13,000 jobs in FY26, according to the figures reported in the story.
The trend has raised questions about why banks are hiring fewer people despite expanding their physical network.
Why did private banks cut jobs?
ICICI Bank saw the biggest fall in its workforce. By March 31, 2026, its permanent employee count had dropped from 1,29,177 to 1,24,029, a fall of 5,148. When other employees are also included, the bank's total workforce fell by 6,633.
HDFC Bank reduced its employee count by 3,343 to 2,11,178. Axis Bank's workforce fell by around 3,100 to 1,01,300. Kotak Mahindra Bank reported a decline of 1,269 employees, taking its total workforce to 74,054.
The cuts have come at a time when these banks are also expanding their branch networks. This may look surprising at first, but the way customers use banks has changed a lot in recent years.
More branches, but fewer people needed
ICICI Bank added 528 branches during FY26, taking its total network to 7,511. HDFC Bank added 234 branches and ended the year with 9,689 branches. Axis Bank expanded its network by around 400 locations, while Kotak Mahindra Bank added 128 branches.
Despite this expansion, banks do not need as many employees at every branch as they did in the past.
A large part of regular banking work has moved online. Customers now use mobile banking, internet banking, UPI and ATMs for many everyday transactions. Tasks such as opening accounts, checking documents, making payments and processing some loans can also be handled digitally or through central teams.
This means a new branch does not always require a large staff. Instead, branches are increasingly being used to bring in new customers and sell financial products.
What does this means for bank jobs?
The shift does not mean that banks no longer need employees. Rather, the type of work is changing. Banks still need people who can deal directly with customers and help them choose financial products. Relationship managers, sales employees, wealth advisers and other skilled workers continue to have an important role.
At the same time, routine work that once required employees at branches can now be completed through digital systems. This allows banks to manage more customers with fewer people in some areas.
The latest workforce figures therefore point to a wider change in the banking sector. Banks are continuing to expand their reach, but digital banking is reducing the need for staff to handle many routine tasks. As technology becomes a bigger part of banking, the focus is likely to move further towards specialised roles and customer-facing jobs.