The exercise will target 900 Grade C level officials of the rank of assistant general manager (AGM) who otherwise will have to wait for 12-13 long years for their promotions to the rank of deputy general manager (DGM). Nabards has total 5,000 employees.
Nabard official told FE The bank proposes to address this issue by adopting three pronged strategy. Firstly, bank plans to offer a golden handshake, which will offer lucrative package to employees. Secondly, officials will be offered an attachment scheme wherein they can join any banks or other institutions. Thirdly, employees with 57 years of age will not be transferred but in such case they will have to forgo their promotions.
The official said that grade C officials opting for golden handshake will be entitled for an attractive package of not less than Rs 30 lakh.
The official further explained that attachment scheme gives an opportunity for employees to seek good package in other banks, financial institutions or even in non government organisations. In such situation, these employees will be relieved from their respective position in Nabard.
Nabard officers association sources admitted that the bank management did discuss these issues with the association. However, we are yet to know whether the board of directors has given its approval for the same. The association is of the view that the issue of stagnation or promotion cannot be resolved by these measures alone and the bank needs to create some more posts. However, the management has yet to take a decision in this regard, sources added.
Meanwhile, keeping in view the money market conditions, the macro economic scenario and the need for promoting capital formation in rural areas, Nabard has reduced the interest rates on refinance for investment credit by 25 basis points to 75 basis points for lendings made by various rural financial institutions.
The revised interest rates with effect from February 2 will be 9.5% per annum for commercial banks and 9% per annum for cooperative banks and regional rural banks (RRBs). Special relaxation of 50 basis points has been extended for north east (NE) region, hill states and Andmana & Nicobar Islands in respect of financing made by commercial banks.