Axis Bank Reports Slight Decline in Workforce Amid Technological Advancements
New Delhi: On Saturday, Axis Bank announced a modest reduction in its workforce as of the conclusion of the fiscal year 2025-26.
This shift has been attributed to ongoing investments in technology that have begun to enhance both operational efficiency and employee productivity.
During a post-earnings conference call, Amitabh Chaudhry, the managing director and chief executive, elaborated on the bank’s strategic goal of digital transformation, indicating that this trend toward headcount optimisation is an inevitable consequence of their long-term strategy.
Chaudhry emphasised that sustained investments in technology over recent years are yielding notable improvements in operational efficiency across the organisation.
The bank’s workforce has dwindled to approximately 1.01 lakh employees in FY26, down from 1.04 lakh in the previous year, reflecting a reduction of around 3,000 positions.
Axis Bank clarified that this decline was not directed at any particular business segment, but was spread broadly across various functions, all while the bank continues to expand its physical footprint.
In the course of the year, the lender introduced nearly 400 new branches nationally, necessitating additional hiring and training along with augmented digitisation initiatives.
The institution asserted that its strategy remains focused on balancing branch proliferation with enhancements in technology-driven efficiency.
Chaudhry pointed out that the bank has consistently allocated between 9 per cent and 10 per cent of its operating expenditure to technological enhancements over the past three to four years.
He noted that these investments were pursued irrespective of business cycles, with a vision to establish a long-lasting strategic advantage.
Notably, although the emphasis on automation is palpable, the contribution of artificial intelligence to workforce reduction has yet to be significantly felt.
Currently, AI technologies are primarily employed to refine processes and hasten end-to-end transaction times, rather than to supplant workforce roles.
From a financial perspective, Axis Bank reported a largely steady performance for the March quarter, declaring a profit of Rs 7,071 crore, slightly down from Rs 7,117 crore in the corresponding period of the previous year.
Furthermore, the bank declared a dividend of Rs 1 per share for FY26, as reflected in its stock exchange filing.
Source link: Hr.economictimes.indiatimes.com.
