SBI announces new voluntary retirement scheme

The State Bank of India (SBI) has announced a new voluntary retirement scheme (VRS) for its employees.

The bank, through its scheme called 'Second Innings Tap-Voluntary Retirement Scheme-2020 (SITVRS-2020) aims at optimising human resources and costs.

The plan will be open for three months, from December 1 to January every year.

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As per the proposed eligibility criteria, a total of 11,565 officers and 18,625 staff of SBI qualify for the new VRS scheme.

Employees who decide to opt for the plan will be paid 50 per cent of their salary for the residual period of service.

The bank expects to save around Rs 2,170.85 crore if 30 per cent of the eligible employees decide to go for the new scheme.

SBI had nearly 2.5 lakh employees on its rolls as of March 2020.

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Following the coronavirus outbreak, several employees with co-morbidities and other disorders had suggested that they would prefer to stay at home, while others were not willing to move from one city to another.

Such officials had expressed desire for the VRS scheme, an official told Business Standard, adding that another driver behind the scheme was the bank's plan to bring down the average age of the organisation. This, the official stated, would help with renewal when employees move up the ladder faster and new talent is absorbed.