Wednesday, 22 February 2017

SBI may implement VRS post merger with associate banks

The Union Cabinet had last week cleared the merger of five associate banks — State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT) — with SBI. 

The Financial Express reports that after the merger, SBI will more likely implement a branch rationalisation, to relocate some of the branches of it's associate bank. It is also likely to implement a voluntary retirement scheme (VRS) which could lead to a lower headcount in the number of employees from the total employee base of 73,000 in the associate banks. Though the bank has still not disclosed the VRS terms, more likely it will be open to those staffers who have put in 20 years or have completed 55 years as on September 30, 2016.
It has offered ex-gratia amounting to 50 per cent of salary for residual period of service subject to a maximum of 30 months salary.

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