Will bank employees get VRS option as part of BOB, Vijaya & Dena Bank merger deal ? - 11th Bipartite Latest News


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Tuesday, 8 January 2019

Will bank employees get VRS option as part of BOB, Vijaya & Dena Bank merger deal ?

What would be the impact of proposed merger deal of BOB, Vijaya & Dena Bank ? - A Question in the mind of each of the employee of Dena & Vijaya bank !

Although Union finance minister Arun Jaitley promised that employees of these banks will be protected and no job loss post merger, but banking experts said there would be areas of overlaps and flabs post-merger which the new management of the amalgamated bank would need to look into.

Bank of Baroda, Dena Bank and Vijaya Bank have about 85,600 employees between them.

If we calculate, the merger of State Bank of India and its associates, about 4,000 employees at SBI and associate banks had opted for VRS post merger. 

Based on these facts, it is believed that voluntary retirement scheme will be the most likely to be the part of the amalgamation process.

Voluntary retirement may become a way of life for many as part of the proposed merger scheme between three state-owned banks -- Bank of Baroda, Dena Bank and Vijaya Bank.

Why VRS ?

1. Given the larger presence of BoB and Dena Bank in Gujarat, there would be overlap of branches and ATMs, so there could be gains from rationalization.

2. Bankers' who are in their Mid 50's, not willing to take any business decision in fear of going wrong and getting punished, rather would be happy to take VRS if it comes.

3. The proposed merger has created a psychological divide between seniors and juniors as well: while younger employees see the possibility of working in bigger bank as a better career opportunity, seniors have become somewhat apprehensive.

4. Branch rationalization and lower capital.

The government on Monday said that employees would be protected and they would get the best package prevailed among the three banks.

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