Jakarta –

Thousands of Indian bank employees have quit their jobs for various reasons. Banks in India are expanding into new regions and businesses due to economic growth.

Quoted from Times of the StraitOn Thursday (15.08.2024), the pressure exerted by companies on this issue has had worrying consequences, namely the worst turnover among bankers.

India's economic growth has made it easier for some inexperienced bankers to earn extra pay by moving from one company to another. However, there are those who complain that quitting is their only option for advancement due to a lack of training and development opportunities.

Bankers' salaries in India have risen dramatically for senior positions, approaching those in Hong Kong and Singapore. However, salaries for the lowest-level employees remain low, leading to a widening gap between rich and poor groups in the country.

In general, junior executives say that managers are unable to prepare their employees for the challenges of the current Indian financial system.

In the last decade alone, hundreds of millions of people have opened their first bank accounts, and many banks have diversified their portfolios in ways that would have been unthinkable in India's modern history, when the country was closed to investors.

These forces have led to intense competition between traditional banks, modern fintech companies and shadow lenders. As investment opportunities increase in India, bank deposit growth is now slower than loan growth, meaning firms struggle to find customers in a much more crowded sector.

Bengaluru-based Xpheno co-founder Kamal Karanth said many investors see nothing but profits for India. They expect banks to do whatever they can to drive business. This often puts a strain on junior staff and leads to higher friction between employees and the institution.

“Sales teams are the ones who are most affected,” he said.

“Frontline employees had to aggressively sell the company’s products and ultimately faced difficult working conditions and angry consumers,” he continued.

Reserve Bank of India (RBI) Governor Shaktikanta Das said in October 2023 that the central bank was closely monitoring the fluctuation rate and forming a team to resolve the issue.

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