PSBs considered for privatization likely to offer VRS: Report

Voluntary Retirement Scheme

Two public sector banks who are selected for the privatisation plan by the centre, are likely to offer a voluntary retirement scheme (VRS) to some of its employees, according to media reports.

While presenting the Budget 2021-22 on February 1, the Finance Minister Nirmala Sitharaman stated that the centre proposed to take up the privatisation of two public sector banks (PSBs) and one general insurance company.

As reported widely, an attractive VRS will be offered to the some of the employees to make the banks considered under privatization plan competitive enough to fit the private sector space.

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Reports suggest that the VRS is forced exit but an option given to those who would like to take early retirement with good financial package, the sources revealed that it has done before during the consolidation of some of the PSBs.

The NITI Aayog has been given the responsibility to identify suitable banks for the privatization. The panel from NITI Aayog is headed by Cabinet Secretary Rajiv Gauba.

Central Bank of India, Indian Overseas Bank, Bank of Maharashtra and Bank of India are some of the lenders that are likely to considered for privatisation by the Core Group of Secretaries on Disinvestment.

The other members of the high-level panel are 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 administrative department.

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