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The employees of State Bank of India’s associate banks will be soon be offered a Voluntary Retirement Scheme (VRS).
A decision to this effect was taken at its board meeting held last week, said reliable sources.
“The scheme offers retirement option to those who complete 20 years of service or have attained 55 years of age. They will be paid salary for the period of remaining service with a cap of 30 months,” a senior executive told BusinessLine on Monday.
However, the official communication on the VRS has not been sent to the employees yet.
The idea behind the scheme is to trim the workforce of the associate banks before their merger with SBI, it is learnt.
The offer will be applicable to about 55,000 officers and clerks currently working for associate banks.
According to a senior functionary of SBH officer’s association, the offer is not “attractive” as it offers only two-and-a- half years’ salary for those with five years’ service remaining.
“A few people might respond positively, but I don’t expect huge movement,” he said.
Currently, the age of superannuation for bank employees is 60 years.
In June 2016, the Centre had approved the merger of SBI and its five associate banks and Bharatiya Mahila Bank (BMB).
It is learnt that SBI is likely to complete the merger in the fourth quarter of the current financial year. This will mean the end of the road for State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
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