1 / 14

State Bank of India – The VRS Story

State Bank of India – The VRS Story. By: Harshala Salunke (Roll No.86) Mahesh Toraskar (Roll No. 112). Site Map. Overview Competition Right sizing Strategy (VRS) Reason for redesigning the VRS Post VRS Scenario Consequences Conclusion. Overview. Origin – Establishment 1806

levi
Download Presentation

State Bank of India – The VRS Story

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. State Bank of India – The VRS Story By: Harshala Salunke (Roll No.86) Mahesh Toraskar (Roll No. 112)

  2. Site Map • Overview • Competition • Right sizing Strategy (VRS) • Reason for redesigning the VRS • Post VRS Scenario • Consequences • Conclusion

  3. Overview • Origin – Establishment 1806 • State bank group 1-State Bank of Bikaner and Jaipur (SBBJ)2-State Bank of Hyderabad (SBH)3-State Bank of Indore (SBIR) 4-State Bank of Mysore (SBM) 5-State Bank of Patiala (SBP) 6-State Bank of Saurashtra (SBS) 7-State Bank of Travancore (SBT)

  4. Overview • SBI India’s largest public sector bank In terms of— Reach-Network of branches Customer Base-Revenue Experience-Workforce

  5. Services Offered

  6. Paradigm Shift • Technological Advancements -Computerization -Internet Banking -ATM’s • Banking Dynamics

  7. Competition • Comparison between SBI & some NPBs.

  8. Right sizing Strategy (VRS) • To protect business • To remain profitable • To reduce cost of operations • To get rid of the dead woods

  9. VRS Package & response • Eligibility – 15 Years of service / greater than 40 years as on March 31,2000 • 60 Days of Salary for every completed year of service or salary to be drawn by for the remaining period of service whichever is lower. • Total 35,000 Applications • 19,295 were officer ( 33 % of Total Officers)

  10. Reason for redesigning the VRS Reason • To restrict the huge out flow of officers • Competence gain by competitor • To maintain balance between workforce Process • Fixing age bar (increased to 55yrs from 40 Yrs) • Eligibility criteria Criticism • Formation of SBIVRS optee Officers Association

  11. Post VRS Scenario • SBI merge 440 loss making branches • Reduced regional offices from 10 to 1 or 2 • A single officer had to take care of 3 or 4 branches • Acute manpower shortage in departments like internal audit, monitoring, inspection of borrowers • Lost experts to competitors

  12. Consequences Shortage of Man power Stress Among employee POOR HR POLICY VRS outcome Reason Required more Working capital Increase workload

  13. Conclusion • SBI objective of VRS were defeated • To get rid of the dead wood • Improve functioning of organisation • The VRS strategy demoralized and demotivated the existing employee by fear of increasing work load

  14. THANK YOU

More Related