Presented to: Prof.Parikshit Mahankal Prof. C.

Bhave

Presented By: Group no.4

Pooja Bhalerao (20) Sarita Chawla (24) Apurv Gujarathi (34) Neha Kamble (44) Nisha Jain (72) Nilesh Patil (76) Sunny Patil (78) Anand Batavia (118)

 The case is about SBI, which is the largest bank in India in

terms of network of branches, revenues and workforce. A large portion of the back-office staff had become redundant after the computerization of banks. To protect its business and remain profitable, SBI realized that it would have to reduce its cost of operations and increase its revenues from fee-based services. The VRS implementation was a part of an over all cost cutting initiative. In order to trim the workforce and reduce staff cost, the Government announced that it would be reducing its manpower. In Feb 2001 they issued revised eligibility criteria , Due to which 12000 applications were rejected.

 Technological tools like ATM and Internet were slowly

being implemented in SBI as compared to NPBs. However, despite all the protests, SBI received around 35,000 applications for the VRS. SBI also planned to reduce its regional offices from 10 to 1 or 2 in each circle. Analysts felt that SBI would have to take serious steps to reorient its HRD policy to restore employee confidence and retain its talented personnel.

 1) The results of the SBI VRS were not in line with

the managements expectations. Comment on the above statement and discuss the effects of the VRS on SBI. The above statement is true. The management did not expect the large number of officer cadre to apply for VRS. The bank was having huge NPAs, due to rise of NPBs.

 2) In most of the VRS implementation exercises in

Indian PSUs, the largest number of applicants have been from the officer cadre. Was SBI wrong in not anticipating this for its VRS? Also comment whether SBI was justified in altering the eligibility criteria for the officer cadre to restrict their outflow . Yes, They were wrong in not anticipating the large number of applicants from officer cadre. And altering the eligibility criteria for the officer cadre to restrict their outflow was rightly justified.

 3) The outcome of the SBI VRS has highlighted the

need for proper manpower planning and HRD policies in Indian public sector banks. Discuss the various steps to be taken by the SBI in the post VRS scenario? They should anticipate the number of people leaving the organization and formulate continuous recruitment process.

 Employees with good performance are to be promoted

earlier. After the computerization of system, employees be given option to work at rural branches.