The BFSI sector in India is on a hiring spree as a latest report by TeamLease Services reveals that the sector is set to witness jump in the net employment in the first half of the fiscal year 2025.
Banking sector is poised to experience the most substantial net employment growth at an impressive 7.21%, positioning it as the leader in employment expansion within the BFSI sector, the report said.
Following closely, NBFCs are expected to witness significant employment growth with a projected net increase of 5.41%, signifying their ambitious workforce expansion plans.
The insurance sector is projected to demonstrate steady growth, with a net employment increase of 5.25%, reflecting the industry’s focus on meeting requirements in regulatory compliance, cybersecurity, and heightened customer engagement.
Meanwhile, FinTech exhibits the lowest growth among the mentioned sectors, with forecasted net employment growth of 4.89%, albeit still indicating a favorable hiring trend.
This growth is attributed to the rise of UPI and the expansion of the open banking ecosystem, the report said.
NBFCs demonstrate highest propensity to expand workforce
The report highlighted that regarding employers’ intent to calibrate workforce sizes, NBFCs demonstrate the highest propensity to expand their workforce.
The findings of a survey-based report reveal that 65% of respondents plan to increase their workforce, while 16% intend to reduce it, and 19% anticipate no change.
These results underscore the dynamic growth of the BFSI sector and its pivotal role in extending credit to the MSMEs.
Consequently, the industry’s revenue exceeded INR 320 billion in FY 24.
60% banks express plans to enlarge workforce
Within the banking sector, 60% of respondents express plans to enlarge their workforce, while 20% intend to downsize it, and an additional 20% foresee no changes, the report said.
The banking industry is positioned for growth, evidenced by the credit growth for Scheduled Commercial Banks, which reached an 11-year high of 15.4% in FY 2023 compared to 10% in FY 22, as well as achieving a three-year high credit-deposit ratio of 75.8%.
57% of FinTechs to increase workforce
The FinTech sector is looking balanced according to the report. 57% of respondents plan to increase their workforce, 20% intend to decrease it, and 23% foresee no change.
The sector’s growth is driven by innovations in digital payments and personalized financial product development.
Insurance shows moderate intent to grow
The report highlighted that the insurance sector also shows a moderate intent to grow, with 56% of respondents planning to increase their workforce, 19% intending to decrease it, and 25% seeing no change.
The resilient Indian banking industry is poised for significant development in growth areas such as retail lending, SME financing, and digital banking, driven by increased credit demand. Meanwhile, the FinTech and insurance industries, though slightly less optimistic, continue to grow steadily, the report concluded.
