Private banks' attrition rate still high: RBI Deputy Governor Swaminathan

RBI Deputy Governor Swaminathan has highlighted the high attrition rates in private banks, urging them to build a core team that grows with the bank over the years. Despite the overall growth in employee strength, private banks face challenges in retaining talent, particularly due to the lure of opportunities in fintech and non-banking finance companies (NBFCs). Swaminathan emphasized the importance of organizational culture and the need for banks to focus on reducing attrition to maintain stability and continuity. He noted that while the RBI has not prescribed specific norms, it is closely monitoring the situation and expects banks to address the issue proactively. The high attrition rates could impact the banks’ ability to build a cohesive team and deliver consistent service. This call to action underscores the need for private banks to invest in employee retention strategies and create a supportive work environment to mitigate the impact of high turnover.