Private Sector Banks Face 25% Attrition Rate, Operational Risks

Employee attrition in private sector banks has risen to around 25%, posing significant operational risks, according to the RBI’s 2023-24 Report on Trend & Progress of Banking. High turnover leads to customer service disruptions, loss of institutional knowledge, and higher recruitment costs. RBI emphasizes that reducing attrition is a strategic imperative, urging banks to adopt better HR practices.