“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 intention to reduce the workforce. The bank has been friendly with employees and is expanding its operations and requires people, which is evidenced by the fact that the bank has plans to hire more than 14,000 employees this year, “the state lender said in an official statement.
According to sources, a draft schema for VRS has been prepared and is awaiting board approval.
The proposed scheme, ‘Second Innings Tap VRS-2020’, aims to optimize the bank’s human resources and costs.
In addition, the draft scheme, seen by PTI, said that it will provide a respectable exit route and option for employees who have reached a saturation level in their career, may not be at the peak of their performance, have some personal problem or they want to develop their professional or personal life outside the bank.
The plan will be open to all permanent officers and staff who have served 25 years or turned 55 by the deadline.
The scheme will open on December 1 and will remain open until the end of February, he said, adding that applications for VRS will be accepted only during this period. 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.
“SBI has an existing workforce of around 2.50 lacs and has been at the forefront in serving the needs of employees and designing ways and means to engage and assist employees in their life journey. In this context, it was thought that would provide an enjoyable solution to employees who expressed a desire to make a strategic shift in their vocations, whether due to career growth limitations, mobility issues, physical health conditions, or family situations. While our commitment to our valued employees continues being unwavering, we are deeply eager to empower the country’s unemployed youth, as evidenced by the fact that we are the only bank in the country that has recruited apprentices under the Government of India’s National Apprenticeship Plan, “the bank further said. .
The scheme will open on December 1 and will remain open until the end of February, he said, adding that applications for VRS will be accepted only during this period.
Based on the proposed eligibility criteria, a total of 11,565 officers and 18,625 staff members will be eligible for the plan.
The total net savings for the bank would be ₹Rs 1,662.86 crore if 30 percent of eligible employees opt for retirement under the scheme, based on estimates based on July 2020 salary, it said.
“The official whose application for retirement under VRS is accepted will receive an ex gratia payment equal to 50% of salary for the remaining period of service (until the date of retirement), subject to a maximum of 18 months of last salary retirement” , He said.
Other benefits such as tip, pension, pension and medical benefits will be awarded to employees seeking VRS.
A staff member retired under the plan will be entitled to hire or return to work at the bank after a two-year reflection period from the date of retirement.
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 also announced VRS with the aim of optimizing human resources.
However, the proposed VRS scheme is not winning favor with the banking unions.
Such a move at a time when the country is in the grip of the COVID-19 pandemic reflects the anti-worker attitude of the leadership, said Ashwani Rana, vice president of the National Organization of Bank Workers.
Congressional leader P Chidambaram on Monday criticized the reported plan by the State Bank of India (SBI) to implement a voluntary retirement plan (VRS) at a time when the economy has crashed, calling it cruel.
“News reports say that SBI plans to implement a VRS scheme as an ‘economic measure’. In normal times, the plan would be debatable. In these abnormal times, when the economy has crashed and jobs are scarce, it is cruel,” he tweeted Chidambaram. .
“If India’s largest lender has to ditch jobs, imagine what other large employers and MSMEs are doing. The plan is apparently voluntary, but we know it will put subtle pressure on the employees the Bank wants. get rid of it. If the current rules provide for a true voluntary retirement, why announce a new plan and give an exact number like 30,190? “he added.
With PTI inputs
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