7,700 Jobs Cut at HDFC, Axis and Kotak… Here’s the Real Reason

— Surya Prakash Josyula

In 2000…

A man walked into a bank.
He withdrew cash.

In 2026…

The same man…
never entered a bank.
He took out his phone.
He made a UPI payment.
The task was exactly the same in both cases.
But between those two moments…
a silent revolution transformed Indian banking.

Its impact…

is now becoming visible in bank jobs.

India’s three largest private banks—HDFC Bank, Axis Bank and Kotak Mahindra Bank—reduced their workforce by more than 7,700 employees in a single financial year.

The surprising part?

The banks are not making losses.
They are not shutting branches.
In fact, they are opening new ones.

So why are jobs declining?

That is where the real story begins.

Think about it for a moment.

When was the last time you walked into a bank branch to withdraw cash?

When did you last update your passbook?

Deposit a cheque?

Visit a branch to open a fixed deposit?

For many people, the answer is probably hard to remember.

Because almost all of these services are now available on a mobile phone.

For customers, this is convenience.

For banks, it represents something very different.

Many tasks that were once performed by people are now being handled by software.

Are jobs disappearing, or are jobs simply changing?

There is a common misconception.

Many people assume that banking jobs are disappearing simply because AI has arrived.

That is not the complete picture.

The real change is much broader.

Digital banking…

UPI…

Video KYC…

Automation…

AI-powered systems…

Together, they have transformed the way banks operate.

Tasks that once took employees hours to complete can now be finished within minutes.

As a result, banks are not trying to eliminate employees altogether.

Instead, they are reshaping their workforce to match the kind of jobs they now require.

HDFC’s Strategy Says a Lot

India’s largest private lender, HDFC Bank, reduced its employee count for the first time in nine years.

At the very same time, however, it provided AI training to more than 50,600 employees.

That sends a clear message.

Banks know that AI is not going away.

Instead of competing against it, they are preparing employees to work alongside it.

Axis Bank has also said that the reduction in employee numbers was mainly driven by productivity gains from long-term technology investments. The bank clarified that AI is currently being used to improve processes, not to directly replace employees.

Another Interesting Detail

There is one important point that many people have overlooked.

The number of employees has gone down.

But the number of branches has not.

In fact, some banks have continued opening new branches.

That means banks are not becoming smaller.

Instead, the number of employees required inside each branch is declining.

That is the real transformation.

Meanwhile, Public Sector Banks Tell a Different Story

This is where the story takes another interesting turn.

While private banks are reducing employee numbers, eight of India’s twelve public sector banks hired a combined 13,223 new employees during the same period.

In other words, two different banking models are evolving at the same time.

Private banks are investing heavily in digital efficiency.

Public sector banks continue to rely more on traditional hiring.

What Does This Mean for Young People?

Every year, hundreds of thousands of young people across Andhra Pradesh and Telangana prepare for IBPS, SBI, RRB, PO and Clerk examinations.

This story does not suggest that banking jobs are disappearing.

It suggests that the skills required for banking jobs are changing.

In the coming years, demand is likely to grow for roles such as:

Customer relationship management
Wealth management
Data analytics
Cybersecurity
Professionals who can work effectively with AI

Routine jobs involving data entry, back-office processing and repetitive operations may become less important over time.

It Won’t Stop with Banking

This is not just a banking story.

Insurance…
BPOs…
Call centres…
Financial operations…

Any industry that depends heavily on repetitive processes is likely to experience similar changes.

Conclusion

The question for young people is no longer simply:

“Will I get a job?”
The more important question is:
“Can I adapt to a world where technology keeps changing the way people work?”

Those who prepare for that future—and learn to work alongside new technologies—are likely to be the ones who succeed in tomorrow’s job market.