The largest private bank in the nation, HDFC Bank, has cut the notice time for departing staff in half. Formerly having to provide 90 days of notice, employees departing the company will now just need to serve 30 days.
"This policy change aims to ensure smooth transitions and provide more flexibility for employees," a senior HDFC Bank official told FE.
Employees at HDFC Bank received an email on May 6 informing them of the change to the HR policy, according to sources.
Before going to print, HDFC Bank has not responded to a question that was given to them.
Probationary employees are required to work a 30-day notice period. The sources claim that if an employee's request is granted by their reporting manager, they may even be dismissed of their duties in less than 30 days.
The second significant private lender to shorten its notice time is HDFC Bank. ICICI Bank shortened their notice period from 90 days to 30 days in 2020. including other public sector banks including State Bank of India, Punjab National Bank, and Bank of Baroda, Kotak Mahindra Bank also has a ninety-day notice period.
In the third quarter of FY24, HDFC Bank, the largest bank by market capitalization, had 208,066 workers overall, surpassing the 200,000 milestone.
The high attrition rate at private banks is still putting pressure on the lender to adjust its policies. In FY23, HDFC Bank saw attrition of 34.15%, compared to the industry average of 24.7%.
The arrangement benefits both banks and employees. Due to the notice period employee's sporadic labor, banks will see an increase in production, the official stated.
