PremiumState Bank of India, the country's largest lender, has planned a voluntary retirement scheme (VRS) to optimise human resources and costs of the bank, according news agency PTI. At least 30,190 employees will be eligible for VRS, according to the report.
'Second Innings Tap VRS-2020', the proposed scheme "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," news agency PTI reported.
All permanent officers and staff who have put 25 years of service or completed 55 years of age on the cut-off date will eligible for the scheme. It will be open on 1 December and will remain open till the end of February. The applications for VRS will be accepted during this period only, the draft mentioned.
"The staff member whose request for retirement under VRS is accepted will be paid an ex-gratia amounting 50% of salary for the residual period of service (up to the date of superannuation), subject to a maximum of 18 months' last drawn salary," the bank 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, the bank added.
A total of 11,565 officers and 18,625 staff will be able to avail the SBI VRS scheme. The bank expects to save around ₹2,170.85 crore if 30% of the eligible employees decide to go for the new scheme.
The total employee strength of country's largest lender stood at 2.49 lakh at the end of March 2020 as compared to 2.57 lakh a year ago.
Ahead of amalgamation of SBI's five associates with it in 2017, the merging subsidiaries had announced VRS for their employees. In 2001, the bank had announced VRS with the objective to optimise human resources. According to PTI sources, a draft scheme for VRS has been prepared and board approval is awaited.
