SBI's VRS offer gets tepid response

Two senior execs with SBI group said the package (maximum 30 mths salary) wasn't seen as attractive

The Voluntary Retirement Scheme (VRS) offer for employees of State Bank of India’s associate banks, now formally merged with the parent, has had a relatively poor response.

A not-so-good package and a weak job market has held back many who of the 12,500 who were eligible from putting in their papers; only 3,500 have finally opted for it.  While 4,300 had applied till the final date of April 5, around 800 of them withdrew applications by April 12, the last day for doing so.
 

A top SBI official said the response was below (about 50 per cent) expectation but this was not a problem, as those who have stayed back are not a burden. Many have significant experience, handy to manage the merger transition. The bank would be look at skill and experience profile for deciding postings, the official said.

All the five entities — State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore, in addition to Bharatiya Mahila Bank (BMB) —merged with SBI with effect from April 1.

The bank had set some criteria for the VRS. Those opting for it should have over 20 years of service and attained at least 55 years of age.

Two senior executives with the SBI group said the package  (maximum 30 months salary) was not seen as attractive. Plus, these are not the best of times to look for a job outside.  Also, employees up to the rank of assistant general manager have an opportunity to get placed within the circle (of SBI) he or she works. This helps to increase the chance of being placed at a branch or office which could be a home place or nearby, they said.

A staffer whose VRS application is accepted is to get an amount equal to 50 per cent of the residual period of service, capped at 30 months’ salary.  The employee strength of SBI after the merger has increased to 270,011, which includes 69,191 from the associate banks and BMB.

The total customer base will reach 370 million, with a branch network of around 24,000 and nearly 59,000 ATMsy. The merged entity will have a deposit base of a little more than Rs 26 lakh crore and advances of Rs 18.5 lakh crore.