Axis Bank’s employee strength fell by around 3,100 in FY26, with the lender linking the reduction to technology-led productivity gains rather than targeted layoffs in a specific division. The bank also clarified that artificial intelligence has not yet materially contributed to headcount reduction.
TL;DR
- Axis Bank’s workforce declined from 104,400 in FY25 to 101,300 in FY26.
- The reduction stood at approximately 3,100 employees.
- The bank said the decline was broad-based and not linked to one vertical.
- Axis Bank added nearly 400 branches during FY26.
- Technology investments remained at 9-10% of operating expenditure.
- AI is currently being used to improve process efficiency, not replace employees.
According to NDTV Profit, Axis Bank’s total workforce stood at about 1.01 lakh employees at the end of FY26, compared with nearly 1.04 lakh employees a year earlier. This resulted in a net decline of roughly 3,100 employees.
The bank clarified that the reduction was not due to layoffs in any specific business vertical. Instead, management attributed the decline to long-term technology investments that are now delivering productivity improvements across operations.
Subrat Mohanty, Executive Director at Axis Bank, said during the bank’s post-earnings conference call, “The trend of headcount optimisation continues because the investments that we have made in technology over the years are starting to give us benefits in terms of productivity gains.”
Despite the decline in workforce, Axis Bank continued expanding its physical footprint by adding close to 400 branches across India in FY26. The bank said productivity improvements were being driven through digitisation, training, employee enablement and process efficiencies.
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Axis Bank also revealed that technology investments have remained steady for the past three to four years at around 9-10% of operating expenditure, highlighting the lender’s long-term digital transformation strategy.
The bank further clarified that artificial intelligence has not yet significantly reduced manpower needs. Currently, AI is being used to simplify workflows, improve data usage, speed up processing and reduce transaction timelines.
On the financial front, Axis Bank reported a March-quarter profit of Rs 7,071 crore, compared with Rs 7,117 crore during the same period last year. The bank also announced a dividend of Rs 1 per share for FY26.
The development highlights how banking institutions are becoming leaner as technology investments mature, though Axis Bank emphasized that this was productivity-led optimization rather than AI-led workforce replacement.
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