NEW DELHI: India's largest private sector bank, ICICI Bank, is cutting around 1,000 jobs at different levels. While the company insists that only the poor performers have been asked to leave, sources say the job cut is part of company’s attempt at cutting cost, mainly in segments such as retail and rural and agri-credit.
“There is nothing unusual happening this year. We have been following this HR practice for the past 12 years, wherein those faring poorly in our appraisal system are advised that they wouldn’t get an increment or bonus or good assignment. Then they are given a choice to either look for a job or continue without complaining about the current job,” says HR head K Ram Kumar, adding that this couldn’t be called retrenchment. “We will be hiring 2,500 people at entry-level in the next 90 days,” he added.
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Under the ICICI Bank’s appraisal policy, around 5% are rated the worst performers. This year, Mr Ram said the number is around 1,000 or 2.5-3% of the total workforce of 40,000. The worst performers are from all business segments and levels, Mr Kumar said, adding that the segments not performing well are likely to have more of them. It is also learnt that the bank has delayed the joining of those who were offered jobs through campus placement.
At least some recruits, who were offered jobs in February this year, are yet to join as the bank has postponed their joining dates. “We have never reneged on our offer. If their joining has been postponed, it must be something related to logistics and they will be joining us soon,” Mr Kumar said.
It is learnt that majority of the job cuts are likely to happen in the retail business. ICICI Bank has, of late, been shifting focus from retail to corporate business. The bank recently said it expected to grow its corporate business at least by 35%in retail.
It said its retail business grew at 30-35% for the past 5-6 years and was likely to slowdown now, in line with the industry, mainly due to high base, high interest rate and high real estate prices. The retail business had so far been the mainstay of ICICI Bank, comprising almost 58% of its total loans and advances. Corporate and international business together comprise 32% while the balance is on account of debt to SMEs and agriculture.
Source: ET
