State Bank of India (SBI) has said it is planning to hire more than 14,000 employees this year and added that its on-tap voluntary retirement scheme (VRS) is not a cost-cutting move.
The government-owned lender has unveiled a VRS scheme under which nearly 30,190 employees are eligible.
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Currently, SBI employs about 250,000 people and the bank pledged to continue supporting them throughout their employee lifecycle.
In a statement, a spokesperson for SBI said that the bank “has been employee-friendly and is expanding its operations and requires people, which are evidenced by the fact that Bank has plans of recruiting more than 14,000 employees this year.
“In this backdrop, it was thought to provide a congenial solution to employees who expressed the desire for making a strategic shift in their vocations, either due to professional growth limitations, mobility issues, physical health conditions, or family situations.”
The bank added that it wants to employ and train the unemployed youth in the country.
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By GlobalDataThe spokesperson added: “We are the only bank in the country which has onboarded Apprentices under the National Apprenticeship Scheme of Government of India.”
Under the ‘Second Innings Tap VRS-2020’ draft scheme, all permanent employees who completed 25 years of association with the bank or reached 55 years of age on the cut-off date are eligible to apply.
However, the leader of the country’s principal opposition party Congress P Chidambaram opposed SBI’s VRS proposal.
On his twitter handle, Chidambaram said: “News reports say that SBI plans to implement a VRS scheme as an ‘economic measure’. In normal times the plan would be debatable. In these abnormal times, when the economy has collapsed and jobs are scarce, it is cruel.
“The plan is ostensibly voluntary but we know that subtle pressure will be brought on the employees that the Bank wants to get rid of. If the current rules provide for genuine voluntary retirement, why announce a new plan and give out an exact number like 30,190?”
