InvestorQ : Is it true that SBI is planning a VRS for its employees and how is the package likely to be?
diksha shah made post

Is it true that SBI is planning a VRS for its employees and how is the package likely to be?

Answer
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Dilmini Mercia answered.
3 weeks ago


You are right that SBI is planning a massive voluntary retirement scheme (VRS) for its eligible employees. The VRS is expected to cover close to 30,200 employees who will be eligible to apply under this scheme.

The VRS will cover nearly 12% of SBI’s current employee strength of 250,000. The last VRS was done by SBI nearly 20 years back and this VRS is expected to give an exit option to many employees who have reached a point of saturation in their careers.

The VRS scheme will be opened for participation in December 2020 and it will stay open all the way to February 2021 next year. Out of the 30,200 persons eligible to apply for VRS, nearly 11,600 belong to the Officer Level while the others are part of clerical staff.

The big challenge would be to find favour with the bank unions. Even in the past, bank unions have raised concerns over VRS offers, even if the package had been attractive. They are most likely to object to it over fears of more such plans.