Hiring in Banking Sector Likely to Grow 7.2%, NBFCs 5% in H1FY25

Mumbai: The banking sector is on a hiring spree poised to experience the most substantial net employment growth at an impressive 7.21 percent, positioning it as the leader in employment expansion within the banking, financial services and insurance (BFSI) sector said a report.

The Employment Outlook Report’ for the first half of fiscal 2025 ( April 2024 to September 2025) by TeamLease Services said that closely following the banking sector is the NBFC sector (Non-Banking Financial Companies) that is expected to witness significant employment growth with a projected net increase of 5.41 per cent, signifying their ambitious workforce expansion plans. On the same lines, the insurance sector is projected to demonstrate steady growth, with a net employment increase of 5.25 per cent, reflecting the industry's focus on meeting requirements in regulatory compliance, cybersecurity, and heightened customer engagement said the report.

“Meanwhile, FinTech exhibits the lowest growth among the mentioned sectors, with forecasted net employment growth of 4.89 per cent, albeit still indicating a favorable hiring trend. This growth is attributed to the rise of UPI and the expansion of the open banking ecosystem.”

Regarding employers' intent to calibrate workforce sizes, NBFCs demonstrate the highest propensity to expand their workforce. The findings of a survey-based report reveal that 65 per cent of respondents plan to increase their workforce, while 16 per cent intend to reduce it, and 19 per cent anticipate no change. Within the banking sector, 60 per cent of respondents express plans to enlarge their workforce, while 20 per cent intend to downsize it, and an additional 20 per cent foresee no changes.

“The resilient Indian banking industry is poised for significant development in growth areas such as retail lending, SME financing, and digital banking, driven by increased credit demand. Meanwhile, the FinTech and insurance industries, though slightly less optimistic, continue to grow steadily. FinTech is leveraging the rapid adoption of UPI and open banking, while the insurance sector is expanding its workforce to meet demands in regulatory compliance, cybersecurity, and enhanced customer engagement,” said Krishnendu Chatterjee, VP and Business Head, TeamLease Services.

The FinTech sector is looking balanced according to the report. Around 57 per cent of respondents plan to increase their workforce, 20 per cent intend to decrease it, and 23 per cent foresee no change. The sector's growth is driven by innovations in digital payments and personalized financial product development. The insurance sector also shows a moderate intent to grow, with 56 per cent of respondents planning to increase their workforce, 19 per cent intending to decrease it, and 25 per cent seeing no change.