With India's credit boom and strong economic growth, India's banking industry is expanding rapidly. However, as more and more Indians seek loans, some bank managers have put great pressure on young employees, leading to India's high staff turnover rate in the world.

According to media reports, although the resignation rate has slightly decreased in the latest data, the resignation rate of financial professionals in India is nearly twice the global average, far higher than that of other countries such as the United States, Japan, and Germany. Among them, the resignation rate of the primary banking group in India is particularly serious, and the resignation rate of some large private banks even exceeds 50%.

The continuous low wages of grassroots employees have led to the widening gap between the rich and the poor in India.

The reasons for this phenomenon are complex and varied. First, India's bank deposit growth rate has fallen behind its credit growth rate, leading to increasingly fierce competition among traditional banks, modern fintech companies, and shadow banks (unregulated lenders), with enterprises having to compete for customer resources in a more and more competitive market. Kamal Karanth, co-founder of the Bangalore-based solutions company Xpheno, pointed out:

"Many investors are confident in the potential of the Indian market and expect banks to expand their business with all their might. However, this high-pressure work environment often puts the greatest pressure on young employees, exacerbating the conflict between employees and institutions."

"The sales team is most affected. Front-line employees must actively promote the company's products and face difficult working conditions and customer dissatisfaction."

Second, the rapid growth of the Indian economy has enabled some junior bank employees to increase their salaries by job-hopping.

Third, due to limited training and promotion opportunities, they can only seek development through resignation.

Fourth, while the salaries of senior bank positions in India have risen substantially, approaching the level of Singapore, the salaries of grassroots employees have always been low. This has resulted in an increasingly large gap between the rich and the poor in India, and some have compared it to the Gilded Age in the late 19th century in the United States.

Fifth, junior employees generally believe that management has failed to provide new employees with the skills needed to adapt to the current financial system. In the past decade, hundreds of millions of Indians have opened bank accounts for the first time. At the same time, the business scope of many banks has expanded into previously unimaginable areas in India's mostly modern history, as the country's financial markets were previously very closed.

Sixth, with the expansion of the financial services sector, young employees are sometimes hired as wealth managers but are actually assigned to other positions, which makes them feel undervalued. This situation is particularly evident among employees who graduate from non-elite schools, who are often assigned to unpopular jobs such as promoting bank products at gas stations or airports.

Seventh, unlike other countries, the primary language in the Indian business environment is usually English, which most Indians do not speak. This means that those who have not grown up in major cities are often at a disadvantage in communicating with the country's elites.

In addition, gender inequality is also evident in the financial industry. According to data from the human resources consulting firm Aon, the proportion of female employees promoted in the financial industry is far lower than that of male employees, with only one out of 13 female employees being promoted compared to one out of eight male employees. This phenomenon corresponds to the low participation rate of Indian women in the labor force globally, making the path to promotion especially difficult for women in the workplace.

India's deep-seated caste and clan hierarchy makes it difficult for outsiders to enter the industry. Priya Agrawal, founder of the Antarang Foundation, pointed out that many talented people are unable to break through the "invisible ceiling" due to their economic status.

The Reserve Bank of India and the banking industry are working to reduce employee turnover.

High staff turnover not only affects customer experience and damages the reputation of Indian banks, but also increases the cost of recruitment and training. In addition, India is one of the youngest countries in the world, and as the largest employment sector in India, high turnover means that companies may lose young talent that is important for driving India's economic growth. Reserve Bank of India Governor Shaktikanta Das said in October last year that the central bank is closely monitoring this phenomenon and has set up a dedicated group to address the issue of employee turnover.

Despite facing many challenges, India's banking industry is also seeking improvements. Top banks are working to reduce employee turnover. According to Macquarie Group Ltd, Axis Bank's employee turnover rate has dropped from 34.8% to 28.8%. Kotak Bank and HDFC Bank have also reported similar declines, with the latter two banks even setting up dedicated teams to improve employee retention and training management personnel.

In addition, some banks, such as Kotak Bank and HDFC Bank, have launched internal career development programs, such as HDFC Bank's "Project Thrive," aimed at cultivating employees' internal career growth.

Agrawal emphasizes: "Banks need to take practical action in terms of diversity, not just make promises. The company is advised to provide mentors for low-income employees to avoid losing talent. Banks' commitments to diversity need to be fulfilled through practical actions, otherwise we will create more inequality."