ICICI Bank has the lowest employee attrition rate among large private sector lenders in the last three financial years, according to a report.

The glue has been competitive remuneration and a better work environment, inducing less number of staff to leave the country’s second-largest private sector bank.

For the banking sector as a whole, the last three financial years has seen a sustained decline on a year-on-year basis.

ICICI Bank’s employee attrition rate has declined to 18% in FY25 from 24.5% a year ago, according to the bank's latest Business Responsibility and Sustainability Reporting (BRSR) report.

During 2022-23, the bank reported an attrition rate of 30.9%, lower than its competitors.

HDFC Bank, the largest private-sector lender, has recorded an employee attrition rate of 22.6% in FY25 compared to 26.9% in FY24. The attrition was 34.2% during 2022-23.

In Axis Bank, the attrition rate was 25.5%, down from 28.8% in FY24, news agency PTI reported.

Kotak Mahindra Bank's manpower exit rate fell to 33.3% in FY25 from 39.6% in the previous year, according to their annual and BRSR reports.

For IndusInd Bank, the attrition rate was 29% in FY25, lower than 37% witnessed during 2023-24 and 51% in FY23.

Over the past three years, from FY23 to FY25, private sector banks have seen a southward movement in their employee attrition rates.

The slowing attrition rate can be attributed to a combination of factors like a subdued entry-level job market in the BFSI and fintech industries and the growth of digital services, PTI reported quoting a senior HR executive of a bank who requested anonymity.

Most private sector banks went on a recruitment frenzy post-pandemic, which led to a high attrition rate subsequently.

"Now, the market appears to be stabilised, meaning banks are not heavily recruiting and the entry-level employees are not leaving banks to join fintech companies," PTI reported quoting a senior HR executive of a private sector bank.