SBI considers forming a new company to reduce expenses, know what will be its effect on jobs

SBI’s operation and support subsidiary has recently received in-principal approval from RBI. Initially, this company will manage employees in bank branches in rural and semi-urban areas.

SBI’s plan to cut expenses

Are government jobs going to end now? Recently, a statement of the government was in the headlines. The government had told in the Lok Sabha that from 2014 to 2022, more than 22 crore job applications were received in various government departments. Out of these, only seven lakh 22 thousand candidates have got jobs. So now the new news is that in the future, hardly so many people can get government jobs. This is because the country’s largest public sector banks state Bank of India To reduce his expenses, he is going to start a separate company for HR related issues. SBI’s operation and support subsidiary has recently received in-principal approval from RBI. Initially, this company will manage employees in bank branches in rural and semi-urban areas.

All the employees who will be appointed by State Bank Operation Support Services will be on contract basis. That is, you will not get a permanent job in banks too. Employees who are appointed on contract basis will not get all the benefits that SBI employees get.

Why is the bank taking this step?

By taking this step, the bank wants to reduce its cost-to-income ratio, which is currently very high as per industry standards. This is because SBI has a huge branch network all over the country. In the first quarter of the current financial year 2022-23, the share of salary in SBI’s total operating expenses was about 45.7 percent. The share of retirement benefits and provisions is 12.4%.

read this also



What will be the effect of this decision

This is what happened about SBI. But will this affect the entire banking industry? SBI Operation Support Services will be the first such subsidiary of its kind in the Indian banking industry. But other banks can also take such a step now. According to sources, many banks have already applied to the RBI to create such a subsidiary. But then RBI did not allow it. But now after getting permission from SBI. Now other banks will also revive their old plan once again and will seek approval from RBI for such a subsidiary.