Private lender HDFC Bank’s attrition rate of around 20 per cent, which is highest in the industry is making its top management anxious. "The staff attrition rate is something that is worrying us as well, and its ranges up to around 20 per cent," managing director and chief executive Aditya Puri told the shareholders at its annual general meeting over the weekend. But he blamed the poor incentive structure in the industry for this mess saying, “if you keep giving executive directors no Esops, then you might see bigger attrition also."
The bank, which has over 3,000 branches, has a total employee strength of over 69,000, Puri said, adding 19 percent of them are women. It can be noted that the scheduled entry of new banks will create further demand for talent and industry watchers expect employees from aggressive, result-oriented lenders like HDFC Bank to be in much demand. According to a recent media report, private sector lenders like HDFC Bank and its larger competitior ICICI Bank and IndusInd Bank are planning to give higher pay hikes to their employees to keep any poachers at bay. The inducements will include a hike in the cash component as well as stock options for senior management, the reports said.
At the meeting, a slew of shareholders complained about poor customer service at its branches, which they themselves face. "I would apologise for any inconvenience caused to anybody in terms of lack of customer service. My understanding is that I have put a robust system, but I will review it again," Puri told a shareholder.
