• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Voluntary retirement scheme not intended at cutting workforce, clarifies SBI

|

New Delhi, Sep 07: The State Bank of India (SBI) on Monday issued a clarification over reports that a VRS scheme has been launched to cut costs, saying the scheme was launched to help the employees in their career decisions and not as a measure to reduce workforce or cut costs.

SBI plans VRS scheme to optimise costs

Issuing a statement the bank said, there have been media reports about the 'On Tap VRS' scheme proposed to be introduced by SBI. The reports have been interpreted as a cost-cutting measure and the bank's intent to reduce workforce.

"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 situations," said the bank in a statement.

SBI has been employee friendly and is expanding its operations and requires people, which is evidenced by the fact that the bank has plans of recruiting more than 14,000 employees this year, it said.

SBI 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.

"While our commitment towards our valued employees remains unshakable, we are deeply desirous of skilling the unemployed youth of the country, as is evidenced by the fact that we are the only bank in the country which has onboarded Apprentices under the National Apprenticeship Scheme of Govt of India," SBI said.

Earlier reports said, a draft scheme for VRS has been prepared by the SBI and board approval is awaited.

The proposed scheme -- 'Second Innings Tap VRS-2020' -- is aimed at optimising human resources and costs of the bank.

Besides, the draft scheme, seen by PTI, said it will provide an option and a respectable exit route to employees who have reached a level of saturation in their career, may not be at the peak of their performance, have some personal issue or want to pursue their professional or personal life outside the bank.

The scheme will be opened to all permanent officers and staff who have put in 25 years of service or have completed 55 years of age on the cut-off date.

The scheme will open on December 1 and will remain open till the end of February, it said, adding that applications for VRS will be accepted during this period only.

As per the proposed eligibility criteria, a total of 11,565 officers and 18,625 staff members will be eligible for the scheme.

The total net savings for the bank would be Rs 1,662.86 crore if 30 per cent of eligible employees opt for retirement under the scheme, as per estimates based on July 2020 salary, it said.

Fall in GDP alarming; time for bureaucracy to take meaningful action: Raghuram Rajan

"The staff member whose request for retirement under VRS is accepted will be paid an ex-gratia amounting 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," it said.

Other benefits like gratuity, pension, provident and medical benefits will be given to employees seeking VRS.

A staff member retired under the scheme will be eligible for engagement or re-employment in the bank after a cooling-off period of two years from the date of retirement.

Ahead of amalgamation of SBI's five associates with it in 2017, the merging subsidiaries had announced VRS for their employees.

In 2001 also the bank had announced VRS with the objective to optimise human resources.

However, the proposed VRS scheme is not finding favour with bank unions.

Such a move at a time when the country is in the grip of coronavirus (Covid-19) pandemic reflects anti-worker attitude of management, National Organisation of Bank Workers Vice President Ashwani Rana said.

(With agency inputs)

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X