The Hindu Business Line : Not many takers for SBI exit option

THE `frustrated and demotivated' employees for whom State Bank of India designed an exit option scheme recently are now a dejected lot thanks to an embedded caveat stipulating application of the scheme to a select few only.

The central board of the bank had in its meeting of March 24 earlier this year approved the exit option scheme for employees and officers of the bank `who feel frustrated and demotivated' due to lack of career prospects. But while doing so, it also authorised the Chairman to grant only `selective application of the scheme' and the Deputy Managing Director and Corporate Development Officer to draft the suitable modification and amendment.

Some of the provisions of the scheme, being implemented with immediate effect, were thus modified for the sake of meeting some legal issues as well as operational clarity. It is this fine-tuning that has drained the scheme of essential features and repelled possible employee interest, a representative of the officers' union told Business Line on condition of anonymity.

An internal circular signed by the Deputy Managing Director and Corporate Development Officer, said the exit option can be availed of by officers in MMGS III and above only, who are over 50 years of age but below 58 years as on the date of application, not promoted to next higher grade/scale within four chances but superseded by juniors.

As against this, the earlier Voluntary Retirement Scheme (VRS) was open to all employees of the banks who had attained 40 years of age.

A second point of dissonance was the condition on ex-gratia payable, on which income tax will apply at the prevailing rates and will be recovered at source. This is most reprehensible and reflects the bank's failure to take up with the Centre income tax exemption up to an amount of Rs 5 lakh permitted under VRS.

Besides the terminal dues, the scheme offered ex-gratia payment of salary last drawn for 50 per cent of service remaining up to the age of 60 years as on the date of retirement subject to a maximum of 36 months only.

In other terms and conditions specified in the circular, it has been made clear that the exit option scheme is `voluntary in nature.' The designated authority will have the sole discretion on acceptance/rejection of the request for release. Officers cannot claim it as a matter of right.

Further, exit option scheme 2005 shall be a `distinct' scheme and should not be construed as a revision of the voluntary retirement scheme introduced by the bank in 2000-01. As such, no claim from any officer who has retired/will be retiring under any other existing or past scheme(s) shall be entertained.

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