If believes on the recent developments, Government may sooner implement the Voluntary Retirement Scheme (VRS) for the employees of already announced merging banks i.e. Bank of Baroda, Dena Bank and Vijaya Bank. Further, 11th bipartite negotiations may gather steam as the merger between the three public sector banks could see massive branch rationalisation in many of the states especially in Gujarat, where both Bank of Baroda and Dena Bank has grown much with surplus manpower.
In Gujarat, Bank of Baroda (BoB) has 1,000-odd branches, while Dena Bank has 650-odd branches. BoB and Dena Bank have about 18 per cent and 35 per cent of their total branch network in the Western State.
So, to make any voluntary retirement scheme (VRS) attractive, it will need to be based on revised salaries. In this regard Ministry of Finance has already directed the IBA Negotiation committee to speed up the wage revision process for 11th Bipartite Settlement.