Standard Chartered Bank and Standard Chartered Grindlays Bank are jointly set to spend around Rs 275 crore on an early retirement scheme which opened today for the banks' non-management staff. StanChart had spent Rs 165.4 crore on a VRS in 1999 -- before its merger with ANZ Grindlays Bank.
The scheme, which targets 1,450 employees, 63 per cent of the total staff strength at both the banks, is the largest-ever separation scheme introduced by any foreign bank operating in India.
Around 65 per cent of the target, 942 employees, are from Standard Chartered Grindlays, while the remaining are from Standard Chartered Bank. Both banks together have a staff strength of around 4,600, down from 5,300 last year.
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The scheme is offered to all employees who have attained the age of 40 years or have completed 10 years of service as on July 1, 2001.
Eligible employees would be entitled to receive either three months' salary for every completed year of service or one month's salary for every month of service left till normal retirement age of 60 years -- whichever is higher.
In addition to this, the employees would receive pension, encashment of privilege leave and all dues from their provident fund.
The retirement age for non-management staff for both the banks is 60 years. However, retirement age for the management staff is 55 years at Standard Chartered and 58 years at Standard Chartered Grindlays. The age for the management staff is likely to be fixed at 55 years for both the banks.
The technology integration of the banks will be completed by around the third or fourth quarter of 2002. The average pay-out would be over Rs 19 lakh per person.
The scheme would close on June 25 and employees who opt for the scheme before June 6 will receive an early bird incentive of up to eight months salary.
Employees whose application will be accepted by the management shall retire from the bank on or before September 30, 2001.
The banks have also identified transition centres in all four metros to help staff in finding new opportunities and for counselling.