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| Details |
Case Code: CLBS007
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| Case Length: 3 pages |
| Period: -- |
| Pub Date: 2004 |
| Teaching Note: Not Available |
| Subject :Business Strategy |
| Price:Rs.50 |
| Organization :-- |
| Industry :Banking |
| Countries : -- |
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State Bank of India - The VRS Story* |
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| The caselet ‘The State Bank of India – The VRS Story’ explains the developments after leading Indian public sector bank SBI decided to implement a VRS. The case examines the reasons for SBI’s employees protesting against the VRS and the post-VRS scenario. |
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Issues: |
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- In spite of the manpower shortage, why did the SBI implement the VRS?
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| Introduction |
The SBI was the largest bank in India in terms of network of branches, revenues and workforce. It offered a wide range of services for both personal and corporate banking. The personal banking services included credit cards, housing loans, consumer loans, and insurance. For corporate banking, SBI offered infrastructure finance, cash management and loan syndication. Over the years, the bank became saddled with a large workforce and huge NPAs.
According to reports, staff costs in 1999-2000 amounted to Rs. 4.5 billion as against Rs. 4.1 billion in 1998-99. Increased competition from the new private sector banks further added to SBI’s problems. The new private sectors banks had effectively leveraged technology to make up for their size.
Though SBI had 9,000 branches, a mere 22% of those (1935 branches) were connected through Internet. In contrast all of HDFC Bank’s 61 branches were connected through internet.......
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| Questions for Discussion: |
1. The outcome of the SBI VRS has highlighted the need for proper manpower planning and HRD policies in Indian public sector banks. Discuss the various steps to be taken by the SBI in the post VRS scenario?
2. The results of the SBI VRS were not in line with the management’s expectations. Comment on the above statement and discuss the effects of the VRS on SBI. |
Keywords |
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VRS Story,SBI,VRS scenario,implement
* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US
$16) per copy.
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