Standard Chartered Bank's non-management executives get exit option
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Updated: Jan 01, 2018, 11.05 AM IST
MUMBAI: Standard Chartered Bank has introduced an early separation scheme (ESS) for its non-management employees in a bid to rationalise its workforce. The scheme is available to employees who are over 40 years and have completed 10 years of service. According to sources, a little over 300 employees would be eligible for the scheme. StanChart has a broad definition of management, which includes a significant part of the executive force.
The bank said in a communication to employees that pension benefits will remain unchanged. Those who opt for the scheme will receive a golden handshake, which can go up to a maximum of 100 months' gross salary and an additional compensation of up to Rs 3.5 lakh.
In response to a query from TOI, StanChart said that it has offered its permanent non-management employees the option of early separation through the ESS. "The scheme is purely voluntary in nature and applications under the scheme can be made between January 1, 2018 and February 15, 2018," the bank said.
"The objective of the scheme is to provide an option to those employees desirous of early separation, to achieve optimum utilisation of manpower and improve operational efficiency and conduct the bank's business profitably in this increasingly competitive environment," it added.
StanChart is the country's largest international bank with 100 branches in 43 cities and has close to 8,000 employees. This does not include those under its new Global Business Services (GBS) centre in Bengaluru. StanChart had said that it plans to have 30% of GBS employees based in Bengaluru over the next few years by doubling the current head count in the city through a combination of internal moves and selective hiring.Sources said that there were no plans to rationalise branches in the country. However, the bank was having a re-look at its ATM network in light of growing digitisation.
StanChart's India operations, led by Zarin Daruwala, swung to a profit in the six months ended June 2017 following 20% growth in operating income. Profit before tax from India increased to $110 million from a $25-million loss in the six months ended June 2016.
The bank said in a communication to employees that pension benefits will remain unchanged. Those who opt for the scheme will receive a golden handshake, which can go up to a maximum of 100 months' gross salary and an additional compensation of up to Rs 3.5 lakh.
In response to a query from TOI, StanChart said that it has offered its permanent non-management employees the option of early separation through the ESS. "The scheme is purely voluntary in nature and applications under the scheme can be made between January 1, 2018 and February 15, 2018," the bank said.
"The objective of the scheme is to provide an option to those employees desirous of early separation, to achieve optimum utilisation of manpower and improve operational efficiency and conduct the bank's business profitably in this increasingly competitive environment," it added.
StanChart is the country's largest international bank with 100 branches in 43 cities and has close to 8,000 employees. This does not include those under its new Global Business Services (GBS) centre in Bengaluru. StanChart had said that it plans to have 30% of GBS employees based in Bengaluru over the next few years by doubling the current head count in the city through a combination of internal moves and selective hiring.Sources said that there were no plans to rationalise branches in the country. However, the bank was having a re-look at its ATM network in light of growing digitisation.
StanChart's India operations, led by Zarin Daruwala, swung to a profit in the six months ended June 2017 following 20% growth in operating income. Profit before tax from India increased to $110 million from a $25-million loss in the six months ended June 2016.
(This article was originally published in The Times of India)
