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issues today > views on VRS                                                                           
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your word on VRS



These are views, opinions, suggestions of members on various forums of banknetindia.com. You can check more of them at:

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ON VRS......

Farid Ali
Every banker going for VRS is thinking that he will definitely get a alternate job. It is well known that foreign & private banks take young officers that too direct recruites from PSU Banks. Further very few banks are going for expansion. So only 2-3% of the total VRS bankers may land up with a job.

Zoliana
Many of these will have their own pet projects/business which they want to start after they leave the Bank. I am sure this is the same for at least 50% of the Bank employees opting for VRS. Further, there a number of Bankers who are just disgusted with their controllers and want to leave.

Yateen Raja
It looks like the bank employees who want to opt for vrs are mostly well settled in life and are above 50 yrs in age they are tired of the daily commuting and have planned to invest the "extra money" they may receive as vrs package profitably so that the pension + the interset etc they will receive will be about same as the salary they are drawing at present.

Adarsh Samaiya
What would be the implications of the VRS scheme on the careers of the young recruits who have just joined the Public Sector Banks.Would it be benefitial or would the lateral recruitment a possible outcome of vrs may hamper their career growth. ..

A Kampani
I think VRS in PSU banks will really help bottomlines of these banks and laso improve productivity ..it IS necessary to shed some excess flab becaus of the higher degree of tech . penetration in banking these days //Just y'day UTI bank opened its 100th odd ATm ..Really the age of tech banking is dawning upon us real soon ..sooner than we can expect.

Zoliana
Most of the public sector banks have a large staff strength that is eating into their profitability. the idea is to let those people who are on the verge of retirement to leave without waiting for their retirement, and that too profitabily. maybe thats why. the trade unions have a different idea.


ON SABATTICAL.......

S.Balachandran
Sabbatical as a measure for reducing surplus staff will not be cost effective in the long run for the following reasons: Even though the banks can save on the salaries & allowances during the leave period, but once the employee returnshe will have to be absorbed and as such redundancy or surplus cannot be cut totally. Retraining cost for the returning staff who are 45 plus, in a totally changed banking environment will be much higher than the cost BANK saves during their leave.Thus ultimately the bank will end up having the reduntant/surplus employee back in its rolls & incurring a higher cost.
Hence it would be better to offer the sabattical to junior level employees for whom the retraining cost will be much lower.

Ravi Singh
It will defeat the whole purpose of VRS. VRS/sabbatical is meant to reduce the reduntant employees of age group of 40+. Instead of giving sabbatical to age group 20-30, bank can very well slow down on fresh recruitment.

R. Krishnamurthy
1. An employee should be free to exercise Sabatical option at any point of time in his career, rather than a specific period. It should be an openoption and should normally be granted by the Bank Managment provided the employee does not have any disciplinary proceedings against him.
2. The option may also be an one time option during his/her (employees) service.
3. Banks should not insist that the employees should close the loan accounts, but can take an undertaking that the employees should servicetheir loans during the sabatical period.
This will help employees to search for a suitable job and then exercise the Sabatical option. He can service the loans from his new employment.Unless some changes are made to make Sabatical option attractive, I hardly feel whether anyone will be able to take up this option.


ALSO........

Vikas Guru
13000 crores outgo is expected in VRS. Nearly 20 percent of this if routed to stock market which is quite reasonable ....... . A Definite push to the stock market.

S.Balachandran
The Government should have a re-think on the issue and decide to float a separate fund, sourced from long term borrowings, to finance the VRS scheme at least in weak banks.







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