Money & Banking

SBI plans to hire more than 14,000 employees

Our Bureau. Mumbai | Updated on September 07, 2020 Published on September 07, 2020

State Bank of India’s Economic Research Department has now estimated that the decline in FY21 growth will likely be in double-digits, around 10.9 per cent, against the previous estimate of 6.8 per cent   -  REUTERS

The bank also plans to introduce ‘On Tap VRS’ to reduce costs

State Bank of India (SBI), on Monday, said it has plans to recruit more than 14,000 employees this year.

This announcement comes even as India’s largest bank is planning to introduce an ‘On Tap VRS’ to optimise human resources and costs. SBI emphasised that it is expanding its operations and requires people. This is evidenced by the fact that the bank has plans to hiremore than 14,000 employees this year, according to the bank’s statement.

On Tap VRS

Referring to the ‘On Tap VRS’, SBI underscored that it has an existing workforce of around 2.50 lakh, and has been in the forefront of serving employee needs and designing ways and means for engaging and assisting employees in their life journey.

“In this backdrop, it was thought to provide a congenial solution to employees who expressed desire for making strategic shift in their vocations, either due to professional growth limitations, mobility issues, physical health conditions or family situation,” the bank said.

As per the proposed eligibility criteria, 11,565 officers (from the Junior Management Grade Sscale – 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, which comes in the backdrop of increased digitialisation and outsourcing by banks.

Net savings

As per estimates based on July 2020 month’s salary, the bank expects net savings of ₹2,170.85 crore if 30 per cent of eligible employees opt for retirement under the scheme. The scheme will be kept open for three months from December 1 to February-end every year.

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 opportunities in present scale; on mobility ground/ mobility restriction for self or as caretaker.

The staff member whose request for retirement under VRS has been accepted 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; and have better opportunities elsewhere.

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Published on September 07, 2020
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