In her Union Budget speech on February 1, FM Niramala Sitharaman announced the government’s plan to conduct privatisation of two more public sector banks, besides IDBI Bank, along with one general insurance company, in the upcoming financial year FY22.
The Niti Aayog is rumoured to have taken into consideration some public sector banks, namely Central Bank of India, Indian Overseas Bank, Bank of Maharashtra and Bank of India, for privatisation.
Reportedly, as the public think tank Niti Aayog has almost finalised/shortlisted Bank of Maharashtra and Indian Overseas Bank for privatisation, employees of these banks are now on the lookout for switching their jobs in bigger banks, like the State Bank of India.
Additionally, reports are also being circulated regarding the likelihood of rolling out an attractive voluntary retirement scheme (VRS) for the employees of these PSBs so that the takeover by private sector entities appears without a layer of extra flab.
Employees of Alleged PSBs to Switch Jobs
According to Moneycontrol, the employees of the alleged two shortlisted public banks for privatisation, Central Bank of India and Indian Overseas Bank, have started to look out for job opportunities at bigger banks, like SBI, while many have already secured or moved out to other jobs.
Niti Aayog has proposed that the employees of nationalised banks will be offered a job guarantee of one-year, post which the fate of the employees remains unclear.
As a result, there has been panic stricken among these employees, hence the decision to hunt and switch to jobs at bigger banks.
Chances of VRS to be Provided to Bank Employees
While a portion of the employees of the shortlisted nationalised banks are hunting for other jobs, others are waiting for some clarity on a probable Voluntary Retirement Scheme to be launched by the management, before these banks are taken over by the private entities.
By rolling out an attractive VRS package, employees are offered a good financial deal/sum for early retirement, thereby cutting the extra workforce in these banks and making them leaner and fitter for takeover by the private sector entities.
The Niti Aayog will be responsible for identifying suitable candidates for the privatisation and reporting it to a high-level panel headed by Cabinet Secretary Rajiv Gauba.
Some of the members of this panel include the Economic Affairs Secretary, Revenue Secretary, Expenditure Secretary, Corporate Affairs Secretary, Secretary Legal Affairs, Secretary Department of Public Enterprises, Secretary Department of Investment and Public Asset Management (DIPAM) and the Secretary of the administrative department.