HDFC Bank witnessed a reduction of its staff by 4,581 employees in a single quarter, all thanks to efficiencies in the system and lower hiring.The country’s second largest lender reported its slowest profit growth ever at 15 % for the December quarter and also saw total headcount reduction by 90,421 on December 31, 2016 as against 95,002 in September 30, 2016.
Reportedly, the bank has linked the reduction in employees from any other factor but efficiencies and lower hiring.
"The drop in headcount has primarily been a result of combination of natural attrition and a hiring at a clip lower than normal made possible by achieving higher productivity and efficiencies over the last few months," the bank told ET.
With efficiencies setting-in, a company may decide not to replace a hand who quits with a new one, which results in a decline on the overall headcount.
However, the bank's employee count increased by 5,802 over the 84,619 people in December 2015.
The employee costs have, increased to Rs 1,688.63 crore from Rs 1,657.21 crore in the preceding quarter.