In India, banks are in need of skill. Due to China’s rapid economic growth and expanding middle class, many international lenders are turning their attention to the nation as US-China tensions rise.
HSBC Holdings Plc is covering childcare costs for bankers in India for up to six years, while Morgan Stanley is offering reimbursement for cab rides for pregnant staff. Additionally, Citigroup Inc. is allowing new mothers to work from home for a year after their maternity leave concludes. These initiatives reflect a growing trend among global financial firms in India to enhance maternity benefits as part of their efforts to attract and retain female employees. This move comes in response to the fact that fewer than a quarter of adult women in India are in the workforce, which is one of the lowest rates globally.
Aditya Mittal, the Chief Human Resources Officer of Citi India & South Asia, emphasized the importance of women’s participation in the country’s development. Recently, Citi India announced that new mothers would have the option to work from home for up to a year after their paid leave ends.
India already mandates a minimum of 26 weeks of fully paid maternity leave, which is one of the most generous policies among the G20 economies. Employers with more than 50 employees are required to provide on-site or nearby daycare facilities. Prime Minister Narendra Modi’s government has also launched a job training program for women and promoted flexible working hours to encourage women to participate in the workforce.
This stands in stark contrast to the United States, where there is no legal provision for paid maternity leave. In the US, JPMorgan Chase & Co. and Bank of America Corp. offer 16 weeks of leave for all new parents, while Goldman Sachs Group Inc. provides 20 weeks for both mothers and fathers.
Global banks are actively seeking talent in India due to its growing economy and middle-class population. HSBC is recruiting wealth bankers for its private banking unit, and Citigroup has identified India as a top market for expansion. These banks employ tens of thousands of people in India, with women constituting approximately 40% of the workforce at Deutsche Bank AG, Barclays Plc, Morgan Stanley, and Citigroup.
To attract and retain talented women, these banks are addressing the specific needs of female employees in India. HSBC provides a monthly childcare allowance of up to $216 to female employees, allowing them to hire a nanny to care for children up to the age of six. In addition to daycare, HSBC offers flexible hours and post-natal career development. At Morgan Stanley, pregnant employees in Mumbai and Bangalore can expense cab rides to avoid crowded public transport during their last trimester. The bank also provides a gradual return to work, coaching for new parents, and mentoring. While Indian law offers 15 days of paternity leave to government employees, there are no mandatory minimums for the private sector.
Citigroup plans to expand its paternity leave benefits to be on par with maternity leave in the coming year, according to Mr. Mittal.
