State Bank of India, the country’s largest lender, has planned a voluntary retirement plan (VRS) to optimize the bank’s human resources and costs, according to the 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 saturation level in their career, who are not at the top of their performance, have some personal problem or they want to follow their professional or personal life outside the bank “, news agency PTI reported.
All permanent officers and staff who have served 25 years or turned 55 by the deadline will be eligible for the program. It will open on December 1 and will remain open until the end of February. VRS applications will be accepted only during this period, the draft mentions.
“The staff member whose application for retirement under VRS is accepted will receive an ex gratia payment equal to 50% of salary for the residual service period (until the date of retirement), subject to a maximum of 18 months of last salary drawn “said the bank. Other benefits such as tip, pension, pension and medical benefits will be awarded to employees seeking VRS.
A staff member retired under the scheme will be eligible for hiring or re-employment at the bank after a two-year reflection period from the date of retirement, the bank added.
A total of 11,565 officers and 18,625 employees will be able to make use of the SBI VRS scheme. The bank hopes to save around ₹Rs 2,170.85 crore if 30% of eligible employees decide to opt for the new plan.
The total employee strength of the country’s largest lender stood at 2.49 lakh at the end of March 2020, compared with 2.57 lakh a year ago.
Prior to the merger of the five SBI associates in 2017, the merging subsidiaries had announced VRS for their employees. In 2001, the bank had announced VRS with the aim of optimizing human resources. According to PTI sources, a draft outline for VRS has been prepared and is awaiting board approval.
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