State Bank of India is preparing to bring VRS for its 30 thousand employees. SBI is preparing to introduce a large voluntary retirement scheme (VRS) for bank employees.
SBI prepares to give VRS to 30 thousand employees
30190 employees could be out of the bank due to this scheme. A draft for VRS has been prepared and the board is awaiting approval. The name of this proposed VRS is Second Inning Tap VRS 2020. Earlier in the year 2001, SBI offered VRS.
How many employees are there in the bank
The total number of employees of SBI was 2.49 lakhs as on 31 March 2020, while the number was 2.57 lakhs by March 2019. According to the proposed draft, a total of 11565 officers and 18625 employees will be eligible for the VRS scheme.
How much will the bank save
The bank says that this initiative is being taken to cut costs. This will save more than two thousand crore rupees. It said that if 30% of the eligible employees of retirement under the scheme also opt for VRS, then according to the salary estimates based on July 2020, SBI will save about Rs 1,662.86 crore.
Which employees will be planned
According to sources, SBI’s VRS scheme will be open to all such permanent officers and employees, who would have given 25 years of service to the bank by the due date or have completed 55 years of age. This scheme will be open from December 1 to February 2021 this year. That is, applications for VRS will be accepted during this period.
What will benefit the employees
Employees whose VRS application will be accepted will get 50 per cent of salary as ex-gratia for the remaining service period till the actual retirement date. Apart from this, other benefits like gratuity, pension, provident fund and medical benefits will also be available.