Category
🗞
NewsTranscript
00:00 India's small finance banks are staring at a talent war as employee attrition has jumped
00:05 significantly in FY23.
00:08 Given the limited talent pool and resources, several lenders like the AU Small Finance
00:13 Bank, Ujjivan Small Finance Bank, Utkarsh Small Finance Bank and the Equita Small Finance
00:19 Bank have witnessed a sharp rise in attrition.
00:23 For these lenders, the attrition rate has now ranged between 35% and 48%, a trend which
00:30 was also seen in India's private sector banks as per BQ Prime's previous report.
00:35 But let's be very clear that the attrition in the small finance banks is concentrated
00:40 among the frontline employees.
00:42 For AU Small Finance Bank, the employee turnover rate increased to 47.3% in FY23 compared with
00:50 42.3% in FY22.
00:54 The bank's head of HR, Vivek Tripathi, told BQ Prime that there has been some increase
00:59 in turnover rate as the overall base of employees remained the same.
01:04 Experts at BQ Prime spoke to explain the possible reasons for a spike in attrition.
01:10 These include aggressive expansionary plans leading to increased competition within the
01:15 sector all to attract better talent.
01:18 Second, the inability to pay beyond a level as small finance banks tend to have limited
01:24 resources.
01:25 But the problem does not end here.
01:27 It comes with employee costs.
01:28 BQ Prime's analysis of data across quarters showed that even the employee expenses have
01:35 spiked.
01:36 Now, given the current economic landscape, monitoring attrition becomes even more important.
01:42 As per experts, if the SFBs are not able to attract the right talent at the right scale,
01:48 it will compromise not just the quality but also the sustainability of growth.
01:53 [MUSIC]