HDFC Bank to Permit Two-Day Work-from-Home Policy for Business and Corporate Functions.

HDFC Bank to Introduce Hybrid Work Model for Employees

HDFC Bank is reportedly planning to allow some of its employees to work from home (WFH) for two days, for a period of thirty days, in what could be a significant move towards adopting a hybrid work model. This development comes as the bank joins a small list of lenders that have introduced similar options for their workers.

The employees who will be eligible for this WFH option are those in business and corporate enabling functions, which largely include information technology (IT), finance, operations, risk, and compliance. This move is seen as a response to Prime Minister Narendra Modi's recent appeal to companies to allow work from home in an effort to conserve fuel and forex reserves, triggered by the war in West Asia and the resulting spike in crude prices.

According to sources, discussions are underway to introduce a one-month trial period for this WFH option, which could be introduced as soon as possible. The source also mentioned that there have been informal talks for some teams in the bank, which are mostly non-client-facing. This comes after private lender IndusInd Bank introduced a hybrid work model for select employees, where employees belonging to technology, marketing, and human resources functions were asked to work from home for two days a week.

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The introduction of this WFH option is also seen as a move towards adopting a hybrid work culture, which has been largely adopted by the information technology and startup sectors. However, traditional sectors such as banking have been conservative in adopting this model, with most lenders gradually calling their employees back to the office over the last two years.

Axis Bank, the country's third-largest lender, was the first major lender to have introduced a hybrid work model in FY21, during the height of the COVID-19 pandemic. The bank's human resources chief had told Moneycontrol that while the introduction of an WFH option may not be an industry-wide trend, more organisations are likely to explore similar models, although they may vary from bank to bank.

HDFC Bank has confirmed the developments, stating that the WFH option is applicable for employees in Business Enabling Functions as well as those in Corporate Enabling Functions. The bank's branches and customer-facing roles will continue to function as per the normal schedule.

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