In a bid to optimise its costs, the State Bank of India (SBI) has planned a voluntary retirement scheme (VRS) under which about 30,190 employees are eligible. According to sources, a draft scheme for VRS has been prepared and board approval is awaited. The proposed scheme, 'Second Innings Tap VRS-2020', is aimed at optimising human resources and costs of the bank.

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.

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, as per estimates based on July 2020 salary.

"The staff member whose request for retirement under VRS is accepted will be paid an ex-gratia amounting 50 percent 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 COVID-19 pandemic reflects anti-worker attitude of management, National Organisation of Bank Workers Vice President Ashwani Rana said.

Senior Congress leader, P Chidambaram, criticised this scheme and pushed it off as a cruel step, while the economy is collapsing, and jobs are scarce because of the pandemic.

However, according to an SBI spokesperson, the bank 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.

In this backdrop, it was thought to provide an amicable solution to employees who expressed a desire for making a strategic shift in their vocations, either due to professional growth limitations, mobility issues, physical health conditions or family situations, added SBI spokesperson.

First Published:Sept 7, 2020 9:36 PM IST