The implementation of India’s New Labor Codes in November 2025 has significantly hiked operational burdens on private banks and insurance giants. For the July-September quarter—no, October-December 2025—opex figures from key players underscore the strain.
HDFC Bank’s Q3 opex hit ₹18,770 crore, versus ₹17,110 crore last year. Exchange disclosures pinpoint ₹800 crore extra employee costs from labor reforms, charged to the income statement. The lender remains vigilant on evolving rules.
ICICI Bank reported a ₹145 crore P&L impact; Yes Bank ₹155 crore; Federal Bank provisioned ₹20.8 crore; RBL Bank foresaw ₹32 crore more spend.
In insurance, HDFC Life absorbed ₹106.02 crore in benefit provisions, slashing income. ICICI Prudential Life at ₹11.04 crore and ICICI Lombard at ₹53.06 crore followed suit.
PSBs sidestepped turbulence, their structures already compliant.
Deeper dive: Reforms demand higher basic salary shares and retainers, amplifying gratuity and pension liabilities. The quartet of codes—Wage, Industrial Relations, Social Security, and OSH—unified 29 laws on November 21, 2025.
Labor Ministry’s draft FAQs empowered precise impact modeling, leading to these proactive provisions amid a transforming regulatory environment.