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SBI sets VRS optee cut-off limit at 23,000 as applications pour in
Sitanshu Swain
Mumbai, Jan 31: The State Bank of India (SBI) has decided to reject 10,000 out of the total 33,000 VRS applications it has received at the close of the stipulated period to accept applications. Top sources pointed out that the Bank has set a cut-off limit for current VRS programme at 23,000 employees. "In the next two days, the bank will take a decision on which categories of optees should be retained," they said. SBI's VRS has received an overwhelming response more than rivalling the cumulative response to the VRS offered by other state-run banks. Applicants cut across ranks and ranged from officers to sub-staff and clerks till the last day on Tuesday. SBI's VRS opened on January 15. The bank intends to reduce its overall staff strength of 2,33,000 by at least 10 per cent. Till January 19, it had received applications from close to 27,000 employees which meant only about 5,000 applied after that.SBI was among the last public-sector banks to announce a VRS. It might be recalled that there has been an overwhelming response to the VRS offered by state-run banks. The cumulative number of VRS applications in Bank of India, Syndicate Bank, Punjab National Bank, Bank of Maharashtra, Indian Bank, Oriental Bank of Commerce, Bank of Baroda, Central Bank of India, Vijaya Bank, and Canara Bank have crossed 25,000. Specific numbers on the response to SBI's VRS were not available nor the cost to be incurred by the bank. But industry sources say that this could well be a very high amount to the tune of Rs 2,500 crore. Other banks have incurred a cost ranging between Rs 400-600 crore on their respective VRS offerings. Meanwhile, SBI Staff Association's general secretary Ashok Dutta on Wednesday said that he will request all associations' members in Bengal circle to withdraw their VRS application as the management had provided an exit opportunity till February 15 for those who had applied for VRS and wanted to withdraw. It is also felt that SBI's VRS will affect its balance sheet to a great extent. The bank made a net profit of Rs 2,052 crore last year. The Financial Express had on Monday quoted SBI chairman Janaki Ballabh as saying that the mode of provisioning for the VRS expense will be decided after February 15, once the bank has processed all applications and after the time allowed for applicants to change their mind. Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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