Money & Banking

SBI comes out with VRS plan

K Ram Kumar Mumbai | Updated on September 02, 2020 Published on September 02, 2020

If 30% staff opt for it, the bank can save ₹2,170.85 crore

State Bank of India has decided to introduce ‘Second Innings Tap – Voluntary Retirement Scheme – 2020 (SITVRS-2020) to optimise human resources and costs. It will be kept open for three months from December 1 to February-end every year

As per the proposed eligibility criteria, a total of 11,565 officers (from the Junior Management Grade Scale – I to the Top Executive Grade Special Scale-I) and 18,625 award staff (clerical and sub-staff) members will be eligible for the Scheme.

As per estimates based on July 2020 month’s salary, India’s largest bank expects net saving of ₹2,170.85 crore if 30 per cent of the eligible employees opt for retirement under the scheme. As at March-end 2020, SBI had 2,49,448 employees on its rolls.

SBI, in its fourth quarter FY20 analyst presentation, had emphasised on the need to control overheads and staff costs, and improve productivity.

The scheme will be open to all permanent officers and award staff (including those from erstwhile associate banks and erstwhile Bharatiya Mahila Bank), who have put in 25 years of service and completed 55 years of age as on the date of application; officers who missed three or more promotion opportunity in present scale; on mobility ground/ mobility restriction for self or as care taker.

Employees opting for VRS will be paid an ex-gratia amounting to 50 per cent of salary for the residual period of service (up to the date of superannuation), subject to a maximum of 18 months last drawn salary.

As per the objectives of the scheme, it provides an option and ‘respectable’ exit route to the employees who have reached a level of saturation in their career; may not be at the peak of their performance; have some personal issues or want to pursue their personal/professional life outside of bank; have better opportunities elsewhere.

The bank wants to have a balanced age profile providing for mobility, training, development of skills and succession planning to higher positions. The VRS scheme will be used as a balancing tool for yearly manpower planning exercise.

Employees opting for VRS will be eligible for engagement/re-employment in the bank after a cooling period of two years from the date of retirement.

Union’s caution

KS Krishna, General Secretary, All India SBI Employees Association, said: “At this juncture, we advise our Members and also all our colleagues to decide not to fall prey to any measure that induce the Employees to leave their hard-earned, precious jobs.

“Trade Unions and workforce in SBI have a greater role to play in containing the ongoing unbridled outsourcing of jobs and processes, for ensuring jobs for the present and future generations.”

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on September 02, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.