Wednesday, March 29, 2017

SBI job cuts may reduce 10% workforce and to cut hiring



According to report, State Bank of India's total workforce will see a reduction over the next two years, after the merger with six entities, owing to attrition, reduced hiring and digitisation.

SBI managing director Rajnish Kumar said, Manpower will go down with the period of time. Around 10 per cent reduction in two years may be a possibility.

Also read: TCS to hire more in US because of H-1B visa problems


The bank has around 207,000 workforce and the merger of six entities - SBBJ (State Bank of Bikaner and Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala), SBH (State Bank of Hyderabad) and Bharatiya Mahila Bank - from April 1 will add approximately 70,000 employees.

He also said, Post-merger we will be at 2,77,000 people in SBI. This may come down to 2,60,000 by March 2019. So it may be less than 10 per cent. Let us first merge and see the impact of the key process changes. We have offered voluntary retirement scheme (VRS), there would be natural attritions and every year we may not replace head by head (replacement recruitment). Manpower will also reduce as a result of digital initiatives. There will be a combined effect. Two years down the line, these efficiencies will start showing. Reduction in manpower will depend on efficiency of the merger and branch networks. Lot of duplication happening will be removed and we will have more feet on the street (customer outreach programmes).

He also said, It will come down from the previous average of hiring. It could be reduced by 50 per cent. We will return to usual 5,000-6,000 recruitment every year. We cannot stop new hiring because it creates a lot of gap in the middle management down the line. But full replacement may not be required. If 13,000 people retire in a year, we may recruit 7,000-8,000 in a year. There is a policy of branch expansion, we are governed by that. We keep on opening new branches depending on the business potential, that will not stop. We are working on the plan as to how many branches we will open in next two years.



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