Post-VRS banks to save Rs. 2,025 cr.

NEW DELHI, NOV. 16. Public sector banks are expected to save a total Rs. 2,025 crores annually after the overwhelming success of voluntary retirement scheme (VRS) which reduced the flab by 12 per cent last fiscal.

Officials in the Finance Ministry said the total VRS cost amounted to Rs. 12,453 crores till September 2001 after 1,019,22 employees opted for VRS but the banks would save a whopping Rs. 2,025 crores in staff costs annually.

State Bank of India stands to gain most as it would save Rs. 500 crores annually after accepting VRS applications from 20,784 employees. The bank and its seven associates shed about 28,000 employees through the VRS scheme which would result in total savings of Rs. 650 crores.

- PTI

Send this article to Friends by E-Mail

Section  : Business
Previous : Bank financing for margin trading to continue
Next     : Spic reports higher losses in H1