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SBI should look at VRS post merger of associate banks: AIBEA
IANS 24 February 2017
The State Bank of India should come with a voluntary retirement scheme after considering the overall staffing picture after merger of five associate banks instead of the five announcing such a scheme before the merger, said the leader of a major bank union.
 
"The five associate banks of State Bank of India (SBI) will soon come out with a voluntary retirement scheme (VRS) as their boards have approved the a scheme. The scheme will be introduced and closed before April 1, 2017, the day on which the merger takes into effect," All India Bank Employees' Association (AIBEA) General Secretary C.H.Venkatachalam told IANS here on Friday.
 
According to him, launching a VRS for the employees of the five associate banks alone is not fair as those who do not opt for retirement and land in the SBI may feel disadvantaged psychologically from day one of the merger.
 
Venkatachalam said branch and staff rationalisation could be look at by the SBI post merger after taking into account an overall view of the operations.
 
On Thursday, the SBI in a regulatory filing in BSE said: "We advise that the Government of India has issued the orders ...under subsection of Section 35 of the State Bank of India Act, 1955... In terms of the said orders, the entire undertaking of SBBJ (State Bank of Bikaner &Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State Bank of Hyderabad) shall stand transferred to and vested in the State Bank of India from April 1, 2017."
 
The cabinet approved acquisition of associate banks by SBI on February 15.
 
According to Venkatachalam, those employees (clerks and officers) who have put in 20 years of service or have completed 55 years of age may be made eligible to opt for VRS.
 
He said the VRS will be open for 15 days from the date of announcement and employees have to exercise their option within that time limit.
 
The VRS quantum may be 50 per cent of the salary for the remaining period of service subject to a maximum of 30 months salary.
 
Venkatachalam said the bank may restrict the number of employees opting for VRS depending on the staffing needs.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
Dayananda
9 years ago
How can they introduce Golden hand shake when Karnataka high court appeal order in a case where an officer was removed from service who proceeded on long leaveto protect himself from compromising on Swift security norms forced on him for bringing out FEMA violations fudging of accounts as internal auditor. The court changed the order even though agreeing punishment disproportionate talks of golden hand shake as officer is stickler for rules and compulsory retirement. The bank conveniently choose compulsory retirement. So without giving any benefit merely changed the words. In the appeal petition the judge says golden hand shake do not have any meaning and uphold banks decision. So how they can offer VRS
Reply
Pelapur R.Varadarajan
9 years ago
The private banks are worse than moneylenders. If they know the law, there is a principle called privy which means they should communicate to the borrower and get an acknowledgment from him. They cannot hide under the rules which are in most cases unknown to the borrower. A borrower is not expected to know the banking jargons, linkage to MCLR and all that. The case cited is fit for a battle and ruling in favor of the borrower. The private banks think they are clever in fooling the public. Imagine the plight of poor.
Reply
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