Private banks add branches, cut headcount: ICICI, Axis, HDFC, Kotak all shrink FY26 staff rolls

For DSAs and connectors, this shift signals where the real leverage in bank relationships is moving. As banks strip out back-office processing roles, front-line relationship managers and branch staff become the primary human touchpoints for loan referrals, documentation support, and borrower trust—exactly the functions a well-run DSA network complements.

For lenders, leaner back offices funded by automation likely mean faster processing turnaround on referred files, changing what DSAs should expect on TAT and follow-up. Connectors whose value is purely data entry or paperwork face the same displacement pressure banks are applying internally; those anchored in borrower relationships and credit sourcing gain relative importance as headcount-based scaling gives way to branch-led, tech-enabled scaling.