Scrap Verma report, say bank unions

General secretary of Indian National Bank Officers’ Congress K K Nair said there was no need for a VRS adding at the most there should only be a redeployment. The United Forum of Bank Unions will meet here on October 12 to discuss the still pending seventh wage settlement and the Verma panel report will also come up for discussion, the union leaders said.

The three banks have a cumulative workforce of 82,000 and the Verma panel is of the view that such a huge workforce jeopardises the survivalof these banks. The report has recommended a freeze on the wage hike including the current one (with effect from November 1997) for a period of five years for these three banks for the real impact to take place on the operating results of the banks.

The panel set up to work out ways for revival of weak public sector banks added: "In order to control their staff costs, the three banks will have to resort to a VRS covering at least 25 per cent of the staff strength. It is estimated that a reasonable VRS for the three banks aimed at 25 per cent reduction would cost Rs 1,100 and Rs 1200 crore."

The committee on banking sector reforms headed by former governor of the RBI M Narasimham had also recommended the introduction of VRS.