Now Hiring! Banking Sector To Record 7.2% Net Employment Growth In First Half Of FY25, Says Report

Non-banking financial companies (NBFCs) are also anticipated to see substantial growth, with a projected net increase of 5.41 per cent, highlighting their aggressive workforce expansion strategies

India's BFSI (Banking, Financial Services, and Insurance) sector is experiencing a robust hiring surge, with the banking industry at the forefront. According to a new report by TeamLease Services, the sector is expected to achieve a net employment growth of 7.21 per cent in the first half of the fiscal year 2025.

Non-banking financial companies (NBFCs) are also anticipated to see substantial growth, with a projected net increase of 5.41 per cent, highlighting their aggressive workforce expansion strategies. Meanwhile, the insurance sector is likely to grow steadily, with a net employment rise of 5.25 per cent, driven by increased demands in regulatory compliance, cybersecurity, and enhanced customer engagement.

In contrast, the FinTech sector is expected to experience the slowest growth among the mentioned sectors, with an expected net employment increase of 4.89 per cent. Despite this, it still reflects a positive hiring trend. This growth is driven by the rise of UPI and the expansion of the open banking ecosystem.

The report indicates a balanced outlook for the FinTech sector. Of the respondents, 57 per cent plan to expand their workforce, 20 per cent intend to reduce it, and 23 per cent expect no change. Growth in this sector is fueled by advancements in digital payments and the development of personalised financial products. 

Similarly, the insurance sector displays a moderate growth intention, with 56 per cent of respondents planning to increase their workforce, 19 per cent aiming to decrease it, and 25 per cent anticipating no change.

"The banking industry is positioned for growth, evidenced by the credit growth for Scheduled Commercial Banks, which reached an 11-year high of 15.4 per cent in FY 2023 compared to 10 per cent in FY 22, as well as achieving a three-year high credit-deposit ratio of 75.8 per cent. These indicators reflect robust economic activity and borrower confidence," reads the report.

Regarding adjusting workforce sizes, NBFCs show the strongest inclination towards expansion. According to the report, 65 per cent of NBFC respondents plan to increase their workforce, 16 per cent plan to reduce it, and 19 per cent expect no change. In the banking sector, 60 per cent of respondents also plan to expand their workforce, while 20 per cent intend to downsize, and 20 per cent foresee no changes.

Commenting on the report’s findings, Krishnendu Chatterjee, VP and Business Head of TeamLease Services, said, "The BFSI sector's growth trajectory underscores the critical role of continuous upskilling and technological adoption. As banking leads with a 7.21 per cent increase in employment and 65 per cent of NBFCs planning workforce expansion, it becomes evident that a tech-savvy, adaptable workforce is key to sustaining this momentum. Embracing innovation and fostering skill development will be crucial in meeting the employment demand in the financial services landscape."