SBI arms to offer voluntary retirement to staff State Bank of Indias

MUMBAI. State Bank of India ’s (SBI) five associate banks will offer voluntary retirement schemes (VRS) for their employees before the merger comes into effect. 
 
The date for the merger is yet to be notified. State Bank of Hyderabad (SBH) board has already approved the VRS while other associate banks have placed the scheme before their boards for approval, two officials aware of the development told Money control. 
 
This move is in line with the decision taken to merge SBI with its five associate banks — State Bank of Bikaner and Jaipur ( SBBJ ), State Bank of Hyderabad (SBH), State Bank of Mysore ( SBM ), State Bank of Patiala (SBP) and State Bank of Travancore ( SBT ). Union Cabinet had cleared the merger on Wednesday. 
 
“The VRS scheme will be open to all permanent award staff and officers in the Bank, except those specifically mentioned as ‘ineligible’, who have put in 20 years of service or have completed 55 years of age as on November 30, 2016,” said the VRS offer document sent to the Board of one of the associate banks for approval. The VRS scheme will apply to approximately over 50,000 employees of all associate banks. 
 
Currently, SBI has just over 2 lakh employees while its associate banks have a cumulative headcount of about 71,000. Under the VRS scheme, the staff members whose request for voluntary retirement is accepted will be paid an ex-gratia amounting to 50 percent of the salary for the residual period of service (up to the date of superannuation), subject to a maximum of 30 months’ salary. 
 
This includes basic pay, stagnation increment, Professional Qualification Pay (PQA), special pay and dearness allowance. This will be paid in cash within five weeks of the date of retirement.

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