With the year end coming closer, the State Bank of India (SBI) is now rapidly reducing its staff from all its branches across India. In the first quarter of the fiscal year 2018 itself, SBI wants to chuck off as many as 6622 staff members bringing the total count of employees to 2.73 lakh from 2.80 lakh.
Why is State Bank of India (SBI) reducing its staff
The number of employees is reducing at the SBI due to their retirements and because of the voluntary retirement scheme. Due to the merger of its associate banks across India, SBI is planning to redeploy more than 10,000 staff members on board.
SBI which is India’s national bank is now consolidating with other banks bringing in the shift in their process of operations via digital mode. These changes have also brought the changes in the integrated job structure of SBI and the employees will be redeployed. The integration process will come into the effect from the first quarter of FY 2018 after restructuring of SBI employees and the merger of banks will be produced on papers. In fact, the bank has more than one branch in the same locality will be downsized to on branch only having a small knitted network of SBI branches with manpower.
SBI to downsize manpower due to merger
Due to the merger of associate banks with the SBI, a significant job restructuring will take place in the coming year. Reducing the number of employees across all branches of India is taking place on account of the integration of a close network of SBI. As many as 594 SBI branches have been merged till August 6 and more branches are due to merge by FY 2018. The merger itself will save up to Rs 1,160 crore per annum and has entrusted SBI Infra Management to manage the assets of the real estate.
State Bank of India (SBI) along with Bharatiya Mahila Bank was declared India’s largest bank in the beginning of the FY 2017, which made SBI rank amongst top 50 banks in the world. But now in order to rationalize personnel costs of the bank, the workforce is being reduced via retirements and voluntary retirement scheme (VRS). The SBI is expecting to reduce about 10 percent of manpower in the coming two years.