Money & Banking

Kerala bank employees’ union oppose CSB’s plan to offer VRS to award employees

Our Bureau Mumbai | Updated on January 21, 2021

The implementation of the scheme will benefit the bank both in terms of financial and customer service, said CSB Bank in the filing

The All Kerala Bank Employees’ Federation (AKBEF) has opposed CSB Bank’s plan to offer voluntary retirement scheme (VRS) to award staff.

The Board of the Thrissur- headquartered CSB Bank had approved the roll-out of VRS on January 19.

CD Josson, General Secretary, AKBEF, said that bringing exit-option for award staff was most inappropriate when the the bank needs to expand its services utilising the experience, expertise and local roots of the employees.

Also read: Kerala bank employees’ body opposes full-fledged functioning of branches

If the management’s plan was to replace permanent employees with contract and cost-to-company mode employees, that would be regressive and anti-labour, he alleged.

KS Krishna, Joint Secretary, All India Bank Employees’ Association, said at a time when the the government and private sector institutions should be ensuring stable employment, it is most intriguing that CSB Bank is going ahead with VRS in the current pandemic situation, even after it has announced better third quarter (October-December 2020) results.

CVR Rajendran, MD and CEO, CSB Bank, said that 223 employees are eligible for VRS and if all these employees opt for the scheme, the outgo for the bank will be around ₹80 crore.


As per the bank’s regulatory filing, VRS will be offered to the eligible award staff, who have completed 50 years of age and have a minimum of 10 years of service with the Bank. The scheme will be effective from January 25, 2021, for such period, as specified in the scheme.

Also read: Banks’ union urges Kerala CM to restrict bank timings, initiate rapid antigen test on employees

The implementation of the scheme will be beneficial to the bank in the long run, both in terms of financial and customer service point of view, said CSB Bank in the filing.

Rajendran said the average annual salary of the award staff is about ₹11-12 lakh.

Published on January 21, 2021

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