The Hyderabad High Court has directed the State Bank of India (SBI) not to finalise the options regarding retirement benefits offered to the officers of its associate banks until June 15.
The SBI had set the deadline of April 13 for the officers of five associate banks (which merged with it on April 1) for choosing options regarding the provident fund, pension and gratuity benefits, among other issues.
The Associate Bank Officers' Association and some others had moved the court against this directive, saying the time given was very short as the process of integration of the SBI and associate banks was underway and their members won't be able to take decision before April 13.
Justice Naveen Rao said in his interim order on April 13 that as "doubts arising out of various clauses of option notification are yet to be cleared", the SBI shall not finalise them till June 15.
The court also asked the SBI and other respondents to file their reply in the meantime.
The State Bank of Hyderabad, the State Bank of Bikaner and Jaipur, the State Bank of Mysore, the State Bank of Patiala and the State Bank of Travancore merged with the SBI, the country's largest lender, on April 1.
Harshavardhan Madabhushi, general secretary of Associate Bank Officers' Association, said the court's interim order may also have an impact on the voluntary retirement scheme announced by the SBI for the employees of merged entities.