India’s BFSI (Banking, Financial Services, and Insurance) sector is poised for a significant increase in net employment in the first half of FY25, according to a report by staffing firm TeamLease Services. The banking sector is expected to lead this growth, with a projected 7.21% rise in net employment from April to September 2024. Non-Banking Financial Companies (NBFCs) follow closely, with an anticipated 5.41% increase, reflecting their ambitious workforce expansion plans.
The insurance sector is set to see a 5.25% growth in net employment, driven by the need for regulatory compliance, cybersecurity, and enhanced customer engagement. Meanwhile, the fintech sector is expected to experience a 4.89% rise, attributed to the growth of UPI (Unified Payments Interface) and the expansion of the open banking ecosystem.
NBFCs bullish
The report highlights NBFCs as having the highest propensity to expand their workforce, with 65% of respondents planning to hire more employees, 16% intending to reduce their workforce, and 19% expecting no change. In the banking sector, 60% of respondents plan to increase their workforce, 20% intend to downsize, and another 20% foresee no changes.
The banking industry’s growth is supported by strong economic indicators, including an 11-year high in credit growth for scheduled commercial banks at 15.4% in FY23, compared to 10% in FY22, and a three-year high credit-deposit ratio of 75.8%. These figures reflect robust economic activity and borrower confidence.
The TeamLease report underscores the critical role of continuous upskilling and technological adoption in the BFSI sector’s growth trajectory. As the sector expands, a tech-savvy and adaptable workforce will be essential to sustain this momentum. The emphasis on innovation and skill development will be crucial in meeting the increasing employment demands within the financial services sector.
