Money & Banking

To stay or not to stay, that is the dilemma for SBI's associate bank employees

LN Revathy Coimbatore | Updated on January 15, 2018 Published on April 03, 2017

Employees of associate banks of State Bank of India, who probably wanted to work in the parent organisation, particularly those who have over 10 years experience, may reconsider their resolve, primarily because their acceptance of the offer to join State Bank of India would be deemed as “new employment”.

The bank has, in its offer letter, advised the employees to indicate their Terminal Benefit Option of either going with SBI’s Terminal Benefit conditions or preferring to stay put with the superannuation benefit of the respective associate bank.

By opting for the SBI Terminal Benefit, the associate bank employees, who joined service after April 1, 2010 would get the bank’s contribution to Provident Fund from the date of joining SBI, gratuity and Defined Contributory Pension Scheme (DCPS) pension as available to SBI employees.

However, those who choose to continue with the terminal benefits presently available in the respective associate bank, will not be entitled to SBI terminal benefits or any other additional benefits, and facilities available to SBI employees would stand withdrawn from the effective date (April 1, 2017).

The offer letter has also stated that the Special Compensatory Allowance (SCA) and Special Balancing Allowance (SBA) will not be payable to associate bank employees as they would be joining SBI, whereas these allowances are payable to those who were in the service of SBI as on the date of respective settlements (that is July 23, 2003 for SCA and November 1, 2007 for SBA).

Coming down heavily on such discrimination, union sources say “such clauses are unjustified and aimed at throwing people out.”

“We were expecting additional hands post-merger. We are now afraid that many will leave and we will be left with skeletal staff. I foresee the exit of experienced hands, leaving a vacuum in the middle management level,” said Thomas Franco, General Secretary, All India Bank Officers’ Confederation.

Published on April 03, 2017
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