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Presented to:

Prof.Parikshit MahankalProf. C. Bhave

Presented By: Group no.4Pooja Bhalerao (20)Sarita Chawla (24)Apurv Gujarathi (34)

Neha Kamble (44)Nisha Jain (72)Nilesh Patil (76)Sunny Patil (78)Anand Batavia (118)

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The case is about SBI, which is the largest bank in India interms of network of branches, revenues and workforce.

A large portion of the back-office staff had becomeredundant after the computerization of banks.

To protect its business and remain profitable, SBI realizedthat it would have to reduce its cost of operations andincrease its revenues from fee-based services.

The VRS implementation was a part of an over all costcutting initiative.

In order to trim the workforce and reduce staff cost, theGovernment announced that it would be reducing itsmanpower.

In Feb 2001 they issued revised eligibility criteria , Due towhich 12000 applications were rejected.

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Technological tools like ATM and Internet were slowlybeing 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 employeeconfidence and retain its talented personnel.

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1) The results of the SBI VRS were not in line withthe managements expectations. Comment on theabove statement and discuss the effects of theVRS on SBI.

The above statement is true.

The management did not expect the large number ofofficer cadre to apply for VRS.

The bank was having huge NPAs, due to rise of NPBs.

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2) In most of the VRS implementation exercises inIndian PSUs, the largest number of applicantshave been from the officer cadre. Was SBI wrongin not anticipating this for its VRS? Also commentwhether SBI was justified in altering theeligibility criteria for the officer cadre to restricttheir outflow .

Yes, They were wrong in not anticipating the largenumber of applicants from officer cadre. And alteringthe eligibility criteria for the officer cadre to restricttheir outflow was rightly justified.

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3) The outcome of the SBI VRS has highlighted theneed for proper manpower planning and HRDpolicies in Indian public sector banks. Discuss thevarious steps to be taken by the SBI in the postVRS scenario?

They should anticipate the number of peopleleaving the organization and formulate continuousrecruitment process.

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Employees with good performance are to be promotedearlier.

After the computerization of system, employees be

given option to work at rural branches.