HUMAN
CAPITAL
Nurturing Talent.
Developing Consistency.
Our people remain our greatest strength. Our commitment extends beyond building skills. By combining the power of technology, coaching, innovation and inclusive people practices, we create a workplace where talent flourishes and ambitions find purpose. Through continuous development, rewarding excellence, enabling career progression and fostering a culture of digital innovation and recognition for learning and performance, we cultivate capabilities that endure. In doing so, we empower our people to shape the future, achieve remarkable milestones and create lasting value for our stakeholders.
SDGs
Material Topics
- Training & Development
- Diversity & Inclusion
- Freedom of Association & Collective Bargaining
- Executive Compensation Linked to ESG Targets
- Employee Well-being & Development
- Talent Attraction & Retention
Stakeholders
Customers
Employees
Building a Strategic and Digitally Enabled HR Foundation
During the year, we strengthened our HR operating model to make people processes more efficient, transparent, compliant, and employee-focused. By digitalizing key HR processes, we are building an integrated foundation that supports the full employee lifecycle and enables better decision-making across the function.
Key initiatives include:
Integrated Recruitment Management System
A unified platform that makes sourcing, selection, and onboarding more transparent, seamless, and efficient.
HR Process Automation through PeopleSoft
Automation of routine HR activities such as attendance management, employee services, workflow approvals, and performance tracking, helping reduce administrative effort and improve turnaround times.
Digital Document Management System
A secure and compliant platform for managing employee records, with controlled access, easier retrieval, and stronger governance.
In addition, we use HR analytics to track workforce productivity, attrition trends, employee engagement, absenteeism, and manpower costs. These insights help us plan better, respond faster, and build a more agile and future-ready workforce.
Optimizing the Workforce for Productivity and Cost Efficiency
As we move from workforce expansion to workforce stabilization, our focus has shifted from adding headcount to improving productivity, efficiency, and role effectiveness. While stabilizing establishment expenses, we continue to support cost optimization while maintaining employee engagement, retention, and morale.
Productivity-led Workforce Planning
We follow a productivity-led approach to workforce planning, using business volumes, digital adoption, employee utilization, customer footfall, and branch profitability as key decision factors. Instead of relying only on fixed staffing norms, we optimize manpower through role redesign, redeployment, and process automation, ensuring that resources remain aligned with business priorities and growth opportunities.
Strategic Approach to Attrition and Replacement
We follow a need-based approach to replacement hiring. Each vacancy arising from attrition is assessed against business criticality, regulatory requirements, customer impact, productivity, and revenue potential. Customer-facing and business-generating roles are prioritized to ensure service continuity and growth, while support and operational roles are reviewed for consolidation, automation, redesign, or redistribution before recruitment is initiated.
This approach is supported by a system-enabled Performance Improvement Plan (PIP) framework, which enables structured performance monitoring and collaboration among employees, managers, and HR. It helps identify performance gaps early and supports timely corrective action.
We have also strengthened early-stage retention with the implementation of technology-enabled onboarding and hand-holding of new employees.
Redeployment, Multi-Skilling and Higher-Value Roles
We continue to promote internal mobility, cross-functional deployment, and multi-skilling to meet workforce needs while reducing dependence on external hiring. As digitization transforms operations, we are shifting employee capacity from transaction processing to higher-value activities such as customer advisory, relationship management, sales, analytics, and business development.
Cost Optimization with a People-centric Approach
Our retention efforts focus on high-performing and high-potential employees through career development opportunities, targeted learning, mentoring, and role-based recognition. We use automation to simplify routine HR processes and expand digital learning platforms to deliver capability-building programs more efficiently.
Organizational Design and Functional Specialization
We continue to strengthen our operating model through greater functional specialization, enabling sharper execution, better productivity, and improved customer outcomes. Dedicated business verticals drive focused business development, while centralized hubs consolidate specialized operations and support functions.
Specialized Business Verticals
Our specialized business verticals, including CASA acquisition units and the Small Business Group, have strengthened customer acquisition, relationship management, and business growth through focused execution and clear accountability. HR supports the scale-up of these verticals through:
- Targeted recruitment for specialized sales, relationship management, MSME banking, and liability sourcing roles
- Customized learning and certification programs aligned with business needs
- Role-specific performance and incentive frameworks that improve accountability and productivity
- Structured career progression pathways to build long-term talent pipelines
- Workforce planning based on geography, customer segments, business potential, and productivity benchmarks
Centralized Functions
We have strengthened centralized legal, recovery, and asset disposal functions to improve operational efficiency, optimize resource use, and enhance compliance. This reduces the administrative load on frontline teams and enables them to focus more on customer engagement and business development.
Key initiatives include
- Standardized processes and stronger regulatory compliance
- Improved recovery effectiveness through specialized legal and recovery teams
- Real-time monitoring of overdue accounts through digital dashboards
- Analytics-led insights to support risk assessment and recovery strategies
Enabling the ‘Lite’ Branch Model
HR continues to support the Bank’s liability-focused and productivity-led ‘Lite’ branch model. The model is designed to drive CASA growth, customer acquisition, and relationship management through optimized staffing and role specialization.
Key HR enablers include
- Recruitment focused on sales orientation, customer acquisition capability, local market knowledge, and digital adaptability
- Performance frameworks linked to business growth, activation, and service metrics
Learning, Training and Capability Building
We continue to build a skilled and adaptable workforce through learning programs aligned with business priorities. Our training mix includes classroom sessions, virtual workshops, practical training, and digital modules across business, risk, compliance, customer service, and leadership.
Key focus areas during the year included:
FY 2025-26 Highlights
9,733
Employees Trained
1,366
Total Training Programs
831
Role-based Training Programs
Targeted Development Partnerships and Interventions
We continued to strengthen capability building through strategic partnerships and structured development initiatives aimed at preparing employees for future business requirements. Key interventions included:
- Customized certification programs in partnership with IIBF to strengthen banking and functional expertise
- Use of Predictive Index tools to support talent optimization and align employee strengths with organizational needs
Focus Areas for Future Capability Building
Our learning roadmap is closely linked to business growth, with a sharper focus on MSME financing and secured lending. Priority areas include:
Credit and Risk
Sector assessment, working capital evaluation, credit underwriting, and collateral management
Compliance and Security
Regulatory developments, control frameworks, and fraud prevention
Customer Excellence
Relationship management and service delivery
Measuring Learning Effectiveness
We measure learning effectiveness through knowledge gained, workplace application, and business impact. This ensures that training improves performance, supports operational excellence, and leads to better customer outcomes.
Continuous Learning
Flex Training Program
Knowledge Updation Tests (KUTs)
Digital Learning (96% e-learning corner)
Virtual training on Products and Processes by Staff Training College
KVB 52 Weeks Quiz Marathon
Banking Tides
Training platforms
Leadership Development and Succession Planning
Leadership development remains central to long-term continuity at the Bank. During the year, we conducted a competency assessment for employees in the Chief Manager and above grades, using behavioral interviews, simulation exercises, and 360-degree feedback to assess leadership potential and create role-specific success profiles.
The outcomes are being used to:
Identify high-potential employees for future leadership roles
Create Individual Development Plans aligned with employee and organizational goals
Design targeted leadership interventions
Strengthen succession planning for critical positions
Our succession framework maps critical roles to a diverse pool of high-potential employees. Through mentoring, leadership programs, and cross-functional exposure, we are building leadership readiness across the Bank.
She Resumes
During the year, we launched the She Resumes initiative to support women employees returning to the workforce after a career break, helping them transition smoothly and rebuild their professional journey with confidence.
Diversity and Inclusion
The Bank has adopted a comprehensive Code of Ethics that underscores its commitment to Human Rights, Anti-Harassment, and Diversity, Equity and Inclusion (DEI) principles. The policy reinforces our resolve to foster a workplace that is safe, respectful, and inclusive, where every employee feels valued, supported, and empowered to achieve their full potential.
Our efforts for sustainable practices in gender diversity have earned recognition from the industry.
To strengthen an inclusive workplace culture, the Bank undertook the following initiatives during the year:
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Empowering Women Leadership
Targeted leadership development programs, including the Women BM Ready Program, Leadership Development Program, and Sales and Negotiation Skills training, were conducted to prepare and empower women employees for leadership roles.
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Samarthan
A Program for New Mothers and Mothers-to-be: Dedicated webinars were organized for women employees who are expecting or have recently become mothers, providing guidance on health, well-being, nutrition, and managing the transition into motherhood while balancing professional responsibilities.
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Prerna
Prerna, a forum of women executives, continued to mentor, inspire, and support women employees by facilitating meaningful interactions, encouraging career development, and fostering personal and professional growth.
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She Leads
As part of the Bank's International Women's Day celebrations, She Leads recognized and celebrated the achievements of women employees across various roles. The She Leads Awards honoured outstanding women performers, with the unique feature of inviting male employees to nominate deserving women colleagues, making the initiative highly engaging and inclusive.
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The MentorLoop
The Bank continued its reverse mentoring initiative for the second consecutive year, enabling younger employees to mentor senior leaders on emerging trends, digital transformation, and evolving customer expectations. The program promoted cross-generational learning, strengthened leadership adaptability, and encouraged a culture of collaboration and continuous learning.
Employee Engagement Initiatives
At KVB, employee engagement extends beyond programs to create a culture where employees feel valued, connected, and empowered. Through initiatives focused on learning, well-being, collaboration, recognition, and creativity, the Bank continues to strengthen employee experience while fostering a high-performing and inclusive workplace.
Festive and Cultural Celebrations
The Bank celebrates festivals and significant occasions throughout the year, strengthening camaraderie and reinforcing a shared sense of belonging across the organization.
RBI Deputy Governor Shri J Swaminathan graces the KVB Central Office, Karur, on our 110th Founder's Day Celebration
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National Festivals
Festivals such as Onam, Pongal, Diwali, and Independence Day were celebrated with enthusiastic participation from employees across locations.
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Founders' Day Celebration
Founders' Day was commemorated through a range of cultural programs and national-level competitions involving employees from across the Bank. As part of the celebrations, the Bank organized its Feeding the Poor initiative across all locations. The occasion also celebrated academic excellence by recognizing the meritorious children of employees securing 80% and above in the Class X and XII public examinations with certificates and cash incentives.
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KVB Inspire: All India Children's Day Competition 2025
To promote financial literacy among school students, the Bank organized the National Finance Olympiad (NFO) for students of Grades 9 to 12. Top performers in each grade were recognized for their achievement. A Children's Day Carnival was also organized at the Central Office, Karur, featuring interactive workshops, games, and recreational activities for employees' children.
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New Year Celebration
Cultural events organized at the Central Office welcomed the New Year by bringing employees together in a festive and collaborative environment.
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International Women's Day Celebration
The Bank celebrated the achievements of women employees through the She Leads initiative, with awards recognizing outstanding contributions across diverse roles. In a unique and inclusive approach, male employees were invited to nominate deserving women colleagues. The celebrations also featured a live webinar by eminent speakers, who shared inspiring perspectives on empowerment, resilience, and professional growth with employees across the Bank.
KVB Aarogya: Employee Well-being
Recognizing that employee well-being is fundamental to organizational success, KVB Aarogya continued to promote physical, mental, and emotional wellness through a range of initiatives.
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Employee Assistance Program (EAP)
During the year, the Bank introduced an Employee Assistance Program to provide confidential counseling, work-life balance support, and access to wellness resources.
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International Yoga Day Webinar
A special webinar highlighted the importance of incorporating yoga into everyday life. Employees were introduced to simple desk yoga practices that can be conveniently integrated into their daily work routine.
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Health and Fitness Webinar
A leading cardiologist conducted an interactive session on preventive healthcare, cardiovascular wellness, and healthy lifestyle practices, encouraging employees to adopt sustainable habits for long-term well-being.
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Samarthan
This initiative continued to support new and expecting mothers through expert-led sessions covering maternal health, nutrition, well-being, and work-life transition.
Continuous Engagement and Recognition
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KVB Gayathri e-Zine
The Bank's quarterly in-house magazine, KVB Gayathri e-Zine, continued to provide employees with a platform to showcase their creativity through articles, blogs, poetry, artwork, and other creative contributions.
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Talent Hunt
The Bank launched a Talent Hunt initiative on its internal portal, enabling employees to register and showcase their talents across multiple categories. The platform encourages creativity, enhances employee participation, and provides opportunities for employees to display their diverse skills beyond their professional roles.
Regulatory and Labour Compliance
We remain committed to maintaining high standards of regulatory and labour compliance while ensuring operational efficiency. As the regulatory landscape continues to evolve, we are strengthening our compliance framework through technology-enabled processes and proactive workforce management practices.
Our HR systems are integrated with core operational platforms, enabling automated monitoring and compliance with employment regulations, wage and benefit requirements, statutory obligations and internal policies. This approach improves accuracy, enhances governance and reduces administrative complexity by embedding compliance into day-to-day operations.
Reward and Recognition
We continue to foster a culture of appreciation and motivation through our structured reward and recognition initiatives, acknowledging outstanding performance, continuous learning, and exemplary contributions across the organization.
MD's Club
A prestigious recognition platform that honors high-performing Branch Heads who have made significant contributions to the Bank's business growth. Eligible Branch Heads are inducted into the MD's Elite Club and MD's Club in recognition of their exceptional performance and leadership.
Learning Recognition
To encourage continuous professional development, the Bank reimburses examination fees for employees who successfully complete certification programs offered by reputed institutes and professional organizations, reinforcing its commitment to lifelong learning and skill enhancement.
KVB Rathna
KVB Rathna is an instant recognition platform through which employees receive appreciation from the Senior Management for exemplary achievements, innovation, and outstanding contributions across various areas of banking operations.
Awards and Accolades
Our commitment to excellence in people development and workplace practices are recognized through prestigious industry awards.
Conferred by the Bangalore Chamber of Industry and Commerce (BCIC), this award recognizes the Bank's initiatives in promoting diversity, equity, and inclusion across its workforce. The recognition reflects our belief that sustainable growth is driven by an inclusive workplace where individuals from diverse backgrounds are empowered to succeed and contribute meaningfully.
Presented by the Indian Institute of Banking and Finance (IIBF), this award recognizes our commitment to building a future-ready workforce through innovative and tailored learning initiatives. It reaffirms our focus on enhancing employee capabilities, strengthening learning agility, and fostering a culture where continuous learning is integral to professional growth.
