Axis Bank is increasingly turning to artificial intelligence and technology to drive growth without a similar rise in employee numbers, pointing to a potential slowdown in hiring as the lender expands its operations.
Axis Bank Ltd. is preparing to rely more heavily on artificial intelligence and digital technology as it looks to grow its business without significantly increasing its workforce.
The strategy could result in a slower pace of hiring at India’s third-largest private sector bank, with Chief Executive Officer Amitabh Chaudhry indicating that technology-led productivity improvements may allow the lender to expand while keeping employee numbers broadly stable.
Speaking to Bloomberg Television, Chaudhry said the bank hopes its technology investments will reduce the need to increase headcount at the same rate seen in the past.
Axis Bank Adds Branches Despite Lower Headcount
Axis Bank has already started seeing productivity benefits from its technology investments. During fiscal 2026, the bank added around 400 branches, even though its net employee count declined by about 3% compared with the previous year.
The lender had more than 101,000 employees at the end of the financial year in March.
The combination of branch expansion and a lower workforce highlights how Axis Bank is attempting to generate greater business output through technology, automation and more efficient deployment of its existing employees.
The bank plans to use a combination of technology, employee attrition and internal redeployment to support its future growth, according to Chaudhry.
AI Expected to Reshape Banking Jobs
Axis Bank’s approach reflects a wider shift taking place across the global banking industry, where financial institutions are rapidly adopting AI to improve productivity and automate certain activities.
Senior executives at major international banks, including JPMorgan Chase, Citigroup and Standard Chartered, have acknowledged that AI could eventually reduce demand for some existing roles while creating new opportunities elsewhere.
JPMorgan CEO Jamie Dimon has previously said AI could eliminate certain jobs, while Citigroup CEO Jane Fraser has indicated that some positions may eventually no longer be necessary. Goldman Sachs President John Waldron has also highlighted the potential for automation to transform highly repetitive work.
No Broad Layoffs Planned
Despite the expected impact of AI on workforce requirements, Chaudhry said Axis Bank does not currently expect employees to be broadly laid off.
He said the bank does not anticipate letting employees go, except in cases involving underperformance.
Instead, Axis Bank intends to use natural attrition and redeployment to adjust its workforce as technology changes the way employees perform their jobs.
Chaudhry also pointed out that AI adoption will create new types of positions that do not exist in the same form today. Employees will therefore need to adapt by learning new technologies and working with emerging digital platforms.
According to him, developing these skills could ultimately improve employees’ roles and strengthen their career opportunities.
Axis Bank Improves Cost Efficiency
The bank’s recent performance also indicates gains in operating efficiency. Axis Bank’s cost-to-assets ratio improved by 18 basis points during the last financial year.
The improvement suggests that the lender is generating more business relative to its employee base and asset size.
Chaudhry said Axis Bank could potentially maintain its workforce at approximately the current level while continuing to expand at a steady pace.
The bank remains smaller than private sector competitors such as HDFC Bank and ICICI Bank in terms of assets. Axis Bank also significantly expanded its consumer banking operations after completing the acquisition of Citigroup’s consumer business in India in 2023.
Foreign Currency Deposits Could Support Credit Growth
Separately, Chaudhry said Indian banks have received a significant inflow of foreign currency deposits.
He expects these funds to be deployed over the next two to three quarters as credit growth gathers momentum across the Indian banking sector.
The development could provide banks with additional resources to support lending as demand for credit strengthens.
For Axis Bank, the combination of AI-led productivity, workforce redeployment, branch expansion and improving credit demand is likely to shape its next phase of growth—with technology playing an increasingly important role in determining how much the bank needs to expand its workforce.