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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. The Total Investment & Insurance Solutions
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. The Total Investment & Insurance Solutions
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 Total Investment & Insurance Solutions
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. The Total Investment & Insurance Solutions
Venkatachalam
said the bank may restrict the number of employees opting for VRS depending on
the staffing needs.The Total Investment
& Insurance Solutions
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