A few days ago, I received a message from my relationship manager informing me that she had left the private sector bank where I hold my primary account. This wasn’t the first time something like this happened. Since 2008, I’ve had relationship managers come and go, with each one lasting around two years before moving on.
This isn’t just my experience; it’s a widespread issue that’s evident in the data. Take HDFC Bank, the country’s largest private bank, for example. In 2023-24, the attrition rate for employees under 30 was 34.7%. Most relationship managers fall into this age group, as they’re typically fresh MBAs, graduates, or individuals with only a few years of experience. Similarly, at Kotak Mahindra Bank, the turnover rate among junior employees under 30 was 49.5%.
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This trend extends across private banks, driven by the intense pressure relationship managers face to sell financial products. Gone are the days when banks focused solely on raising deposits and issuing loans. Now, every banking group owns a mutual fund, an insurance company, and a stock brokerage, pushing relationship managers to pitch a wide array of products—new mutual funds, unit-linked insurance plans (Ulips), and structured products, alongside the traditional ones. Occasionally, they’re also tasked with promoting fixed deposits.
And the competition is fierce on this front, from mutual fund and insurance agents, from standalone stock brokerages, wealth management firms, non-banking finance companies and fintech companies, and from relationship managers at other banks—all vying for the same customers. In fact, over the years, even public sector banks have become aggressive when it comes
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