Government May Implement 'VRS' Scheme For the Employees of BOB, Dena & Vijaya Bank after 11th Bipartite Settlement

Government of India, Ministry of Finance believes that the proposed three-way merger between Bank of Baroda, Vijaya Bank and Dena Bank may necessitate an offer of 'Golden Handshake' for employees. It means government is expecting to settle down the wage revision of Banker's as per 11th Bipartite earlier for the smooth transition of merging process.

Ministry of Finance is expecting that there will naturally be good numbers of VRS applications from the employees of these three banks after the 11th Bipartite negotiation and this is the reason why did ministry ask IBA to speed up the process of wage negotiation ?

Further, 11th bipartite negotiations may gather steam as the merger between the three public sector banks could see massive branch rationalisation in Gujarat, which has been a favourite hunting ground for both Bank of Baroda and Dena Bank to grow business, resulting in surplus manpower. 

So, to make any voluntary retirement scheme (VRS) attractive, it will need to be based on revised salaries. 

In Gujarat, Bank of Baroda (BoB) has 1,000-odd branches, while Dena Bank has 650-odd branches. BoB and Dena Bank have about 18 per cent and 35 per cent of their total branch network in the Western State.

S Nagarajan, General Secretary, All India Bank Officers’ Association said that " In the backdrop of the State and general elections, we expect the negotiations to be concluded before December 31, 2018."