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SBI advances branch rationalisation deadline by 12 months

Bank expects savings in excess of Rs 1,160 crore per annum

Abhijit Lele  |  Mumbai 

SBI, State Bank of India

has compressed the deadline for branch by one year to September 2017 and finish redeployment of staff by December. 

Presenting a report card on merger trajectory, chairman said 594 branches merged till August 6 and expect to achieve branch merger target by end of September 2017.

Bank has the technical capacity and given the current pace of merger of branches, it’s possible to accelerate the process, said its managing director (associates and subsidiaries) Dinesh Khara. 

The bank expects savings from of branch and administrative offices in excess of Rs 1,160 crore per annum. Bank paid Rs 473 crore as ex-gratia amount to 3,569 eligible employees under the Voluntary Retirement Scheme (VRS), which is expected to result in salary savings of Rs 400 crore per annum. After the merger of Associate and in April, country’s largest bank had indicated it will take about 18 months to rationalise its branch network. 8,616  employees are likely to be redeployed.

First Published: Sat, August 12 2017. 21:22 IST