Ahead of merger, SBI offers VRS to 6,000 employees

Mumbai: State Bank of India that wants to become a global bank with merger with five sister banks hopes that as many as 6,000 employees will go for a Voluntary Retirement Scheme, according to moneycontrol.com.

All these employees that the bank wants to offer VRS scheme come from the five associate banks that are to be merged with the SBI. Bharatiya Mahila Bank, India's first all women's bank, will also be merged. 

The largest public sector bank in country presently has 207,000 employees across its branches. After merger with associate banks, SBI will add another 70,000 employees to its staff strength that will take total number of employees to 270,000.

 “The employees opting for VRS is on expected lines,” the website quoted a senior SBI executive as saying. The bank expects at least 50 per cent employees will accept VRS.

As many as 12,000 employees of the five associate banks — State Bank of Bikaner and Jaipur, State Bank of Patiala, State Bank of Mysore, State Bank of Hyderabad and State Bank of Travancore — have been offered the voluntary retirement scheme.

Employees who have been on payrolls of the bank and who have completed a service of 20 years or those who are above 50 years of age are entitled to be considered for the VRS offering.

The merger of five associate banks with the SBI will create a national banking mammoth and a globally competitive bank with an asset value of Rs 37 trillion or $555 billion. The combined entity will have 22,500 branches and 58,000 ATMs and more than 50 crore customers.