SBI cuts staff by at least 6,000; will redeploy 10,000 employees

The State Bank of India (SBI) cut down its staff by at least 6,000 from 2.80 lakh to 2.73 lakh in Q1 of FY18. The exits were due to retirements and voluntary retirement scheme.

SBI, now, wants to redeploy more than 10,000 employees keeping merger with associate banks and also digitisation in mind.

The restructuring comes after the big merger. So far, SBI has merged 594 branches and rationalised 122 administrative offices. This in itself is expected to result in savings of over Rs 1,160 crore annually.

As a part of re-deployment, SBI will have staff in government service branches.

Around 30% of the staff of rationalised branches will be redeployed in sales functions. The bank has introduced a new employee appraisal system where performers will receive financial incentives.

Also, SBI hired just 625 staff members in the first quarter. The bank is recruiting specialists for digital space and marketing though not in large numbers.