SBI slashes headcount, 10k employees to be redeployed

SBI now plans to redeploy over 10,000 employees, following the merger of its associate banks and due to massive digitisation. The main reason of the redeployment is considered to be the merger of multiple bank branches to avoid juggling between different branches in the same street. Not SBI alone, HDFC bank has also pushed to cutting down headcount even though it is already digitised.

After the previous quarter's staff cut, owing to retirements and voluntary retirements, reducing the staff headcount by 6,622, SBI now plans to redeploy over 10,000 employees, following the merger of its associate banks and due to digitisation. Sources also owe it to the merger and the digitisation of channels. Speaking to the Times of India,  Arundhati Bhattacharya, chairman, SBI, said, "While the physics of the merger is over, the chemistry is yet to be completed."

However, the main reason of the redeployment is considered to be the merger of multiple bank branches to avoid juggling between different branches in the same street. SBI has merged 594 branches till August 6 and has rationalised 122 administrative offices.

This is also expected to save over Rs 1,160 crore annually. The bank has also lunched a new entity- the SBI Infra Management, which would be responsible for managing real estate assets.

Not SBI alone, HDFC bank has also pushed to cutting down headcount even though it is already digitised. In fact, HDFC Bank's staff strength has come down from 90.421 in December 2016 to 84,325 in March 2017. SBI, in fact had resorted to voluntary retirement schemes and had kept aside Rs 473 crore ex gratia, which is expected in saving a salary of Rs 400 crore per annum.

Of the total staff redeployment, 2000 will be due to shifting of administrative offices and another 8,618 are being deployed due to branch rationalisation. Close to 30% of the staff of rationalised branches will be redeployed in sales functions.