Ahead of SBI merger, State Bank VRS scheme to remain open for a short time

Ahead of the merger with parent State Bank of India (SBI), associate banks have started rolling out voluntary retirement schemes (VRS) for their employees with a very short deadline.

The VRS rolled out by the State Bank of Patiala has asked the employees to accept the offer within 15 days, between March 22 and April 5. A further seven days, till April 12, has been given to withdraw the application. An employee of the bank said the timeline given was too short.

“Whenever VRS was launched, it was effective for at least 45 days. However, for us, the time is only 15 days,” said a disgruntled employee of the bank.

A senior SBI executive said the announcement of the scheme was just a formal communication. The bank has been in touch with employees on the issue through their association.

The conditions which are part of the scheme had already been discussed and there were no specific rules regarding the time given to decide on VRS. According to the official, around 12,500 people are eligible under the scheme, which is roughly 17 per cent of the employees of all associate banks.

“In view of the acquisition of the bank by the SBI, which will become effective from April 1, it has been decided to extend the VRS to provide an exit for employees who prefer to retire or look for opportunities elsewhere,” stated a letter from the personnel department of the State Bank of Patiala, sent to all branches and departmental heads.

VRS will be available for those who have put in 20 years of service or have completed 55 years of age as on February 28, 2017.

Ineligible employees for the scheme include staff members who have executed bonds and have not completed them; staff members serving abroad, employees against whom disciplinary proceedings are pending or who are under suspension, employees appointed on contract basis and “highly skilled and qualified staff” such as MBA graduates, chartered accountants and equivalent, IT experts, currency and bond dealers etc. Bank unions have asked employees to reject the offer.

Employees opting for VRS will not be eligible for re-employment with the bank but would “be eligible for taking up contractual assignments in SBI.”

“The employees seeking retirement under VRS will not be entitled to dispute the payment received under the scheme on any ground whatsoever,” the scheme said.

Applications for the scheme, other than for subordinate staff members, has to be done online and the employee has to send a written confirmation to the CRS cell at the head office. But, one can withdraw from the scheme only via the old-fashioned physical application mode. Subordinate staff members have to submit a written application for availing the VRS scheme. And the withdrawal from the scheme is not entirely dependent on the employee.

The employees availing VRS will be paid an ex-gratia amounting to 50 per cent of salary for the residual period of service (up to the date of superannuation), subject to a maximum of 30 months’ salary.

The VRS takers, who have opted for pension, will get commuted pension and can encash the balance of privilege leave. Leave fare concession will be extended up to four months after voluntary retirement.

“Respective facilities extended to officers/ others on retirement on superannuation such as retention of accommodation, telephone, car etc. will be extended to officers/others retiring under the VRS, as per present dispensation,” the scheme said, adding, loans availed at concessional rates would continue to be at the terms originally entered.