Top officials say that SBI will see a reduction over the next two years, after the merger with six entities, which results in owing to attrition, reduced hiring and digitisation.
In the next two years, the SBI may see a reduction in the total workforce, after the merge with six organisations, owing to attenuation, reduced hiring, and digitisation, a top official said.
In an Interview with the reporters Managing Director of SBI Rajnish Kumar said, “Manpower will go down with the period of time. Around 10 percent drop in two years may be a possibility.”
Presently, the country’s largest bank has around 207,000 human resources and the merger with six entities will add 70,000 employees from April 1.
The six entities that are merging with SBI are –SBH (State Bank of Hyderabad), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBBJ (State Bank of Bikaner and Jaipur), Bharatiya Mahila Bank and SBP (State Bank of Patiala).
The Post-merger we will be at 2, 77,000 people in SBI but this may fall to 2,60,000 by March 2019 which is less than 10 percent. However, he said that first SBI needs to merge with six entities and later he would see what the impact on it is.
However, the result of the merge would be a reduction in headcount along with re-assignment of the roles, but redundancy is not an option, he said.
He also stated that SBI has offered voluntary retirement scheme (VRS) which includes attritions and every year they may not replace it head by head. The workforce will also decrease as a result of digital initiatives where there will be a combined impact.
Ruling out layoffs, he said the question does not arise. “Two years down the line, these competencies will start showing. The decrease in manpower will depend on the efficiency of the merger and branch networks. A lot of duplication happening will be removed and we will have more feet on the street “, Mr. Kumar said.
Hiring in SBI may not be terminated, but will decrease by 50 percent in a year, he said. The public sector bank recruited 19,000 people in 2016-17.
“But now, it will reduce from the earlier average of hiring. It could come down by 50 per cent. We will return to usual 5,000-6,000 hiring every year,” he said.
He also stated that the SBI will not stop recruiting the people which lead to a lot of gap in the management. If 13,000 people retire in a year, then they would hire 7,000-8,000 people.
He said that the bank will continue with its policy of branch expansion, and the associated bank branches will be merged.
He also added that based on the business potential they keep on opening new branches and currently working on how many branches to open in the next coming years.
There will be plenty of benefits with the merger of six entities in terms of cost-effectiveness and rationalization said, SBI official.