State Bank Of India :

The VRS Story

By:
Priyatosh Padhan
ICFAI TRIPURA
 SITE MAP

 Introduction
 Competition
 Implementation & Effects Of VRS
 Redesigning VRS strategy
 Consequences Of VRS
 Reasons for revamping HR policy.
 Post- VRS Scenario
 INTRODUCTION
 State Bank of India is India's largest commercial
bank.
 The origin of State Bank of India.
 State Bank group :
1-State Bank of Bikaner and Jaipur (SBBJ)
2-State Bank of Hyderabad (SBH)
3-State Bank of India (SBI)
4-State Bank of Indore (SBIR)
5-State Bank of Mysore (SBM)
6-State Bank of Patiala (SBP)
7-State Bank of Saurashtra (SBS)
8-State Bank of Travancore (SBT)
Cont..

Vast domestic network.

It offer wide rang of services.

Cont..

Service
Competition
 Comparison between SBI & some NPBs.
Bank Npas /NET Profit per
Advances employee(Rs.in
mn)

SBI 7.18% 0.43

HDFC o.77% 0.96
UTI 4.71% 0.69
ICICI 1.53% 0.78
GTB 0.87% 1.2
IDBI 1.95% 1.15
VRS & Its Eff ects

Approved by SBI board in Dec 2000.

FICCI’s report
Cost cutting initiative
VRS
Increase its revenue from fee-based services.

Faced Protest
Face severe opposition on Feb 2001
 MERITS:
Cost reduced.
Solution to the problem of overstaff.
Explored new talent.

DEMERITS:
Loss of valuable Human resource.
Acute manpower shortage.
Decreased efficiency.
Increased the work load on existing workforce.
Effect QWL.
Adversely effect customer service.
Alteration Process
REASON
To restrict the out flow of HR.
To maintain balance between workforce.
To reduced the work load.
PROCESS
Fixing age bar.
Restriction regarding eligibility criteria.
CRITICISM
Formation of SBIVRS optee officers ‘ Association.
Media verdict on SBI decision.
Consiquence
Shortage of Stress
Man power Among
employee

POOR HR
VRS outcome Reason POLICY

Required more
Increase Working
workload capital
Reason For Revamping
HR policies

Restoration of employee and existing talent.

Loss of competent employee.

Competence gain by the competitor.

Steps In Post VRS
Scenario
. SBI merge with 400 loss making branches .
●

●
Redeploy additional man power.

●
Reduced regional office
. from 10 to 1 or 2.

●
A single officer had to take
. care of 3 or 4 branches.
 CONCLUSION
The VRS strategy show both the aspects of HR
policy of SBI . It succeeded in decreasing the
workforce which solve the problem of
overstaffing ,on other hand it demoralized
and demotivated the existing employee by
increasing the work load and by hardening
first rules.