After reports of the State Bank of India (SBI) planning a voluntary retirement scheme in a bid to optimise costs, the nationalised bank clarified on Monday that these reports have been interpreted as a cost cutting measure and Bank’s intent to reduce workforce. It said that the bank is in fact expanding operations and plans to recruit more than 14,000 employees this year.
According to the lending major, it is expanding operations and thereby, requires manpower.
"SBI has an existing workforce of around 2.50 lakh and has been in the forefront of serving employees' needs and designing ways and means for engaging and assisting employees in their life journey," a SBI spokesperson said.
Reports suggested on Monday that has planned VRS ‘'Second Innings Tap VRS-2020' under which about 30,190 employees are eligible and that the move aimed at optimising human resources and costs of the bank.
The draft scheme, seen by PTI, said it will provide an option and a respectable exit route to employees who have reached a level of saturation in their career, may not be at the peak of their performance, have some personal issue or want to pursue their professional or personal life outside the bank.
The lender rebutted reports that a proposed 'On Tap VRS' scheme is meant as a cost cutting measure to reduce its workforce.
"Against this backdrop, it was thought to provide a congenial solution to employees who expressed desire for making a strategic shift in their vocation, either due to professional growth limitations, mobility issues, physical health conditions or family situations," the spokesperson said.
"While our commitment towards our valued employees remains unshakable, we are deeply desirous of skilling the unemployed youth of the country, as is evidenced by the fact that we are the only bank in the country which has onboarded apprentices under the 'National Apprenticeship Scheme' of the Central government."