Fresh labor legislation has slammed private Indian banks and insurers with unforeseen expenses, evident in FY26 Q3 financials. Operating costs swelled as firms grappled with heightened staff outlays post-November 2025 rollout.
Top private bank HDFC posted ₹18,770 crore opex for Q3, escalating from ₹17,110 crore prior year. Filings confirm ₹800 crore added to employee expenses via new codes, hitting P&L directly. Ongoing regulatory watch promised.
ICICI: ₹145 crore blow; Yes: ₹155 crore; Federal: ₹20.8 crore provision; RBL: ~₹32 crore estimate.
Insurance heavyweights: HDFC Life’s ₹106.02 crore employee benefit charge cut revenues; ICICI Pru Life ₹11.04 crore; Lombard ₹53.06 crore.
Public peers breathed easy, alignments pre-existing.
Why the spike? Mandated wage tweaks boost basic pay, allowances—fueling larger gratuity, pension deposits. Notified November 21, these codes merge 29 into four streamlined frameworks.
Ministry’s recent guidelines clarified paths, spurring banks’ swift fiscal recalibrations for Q3 disclosures.