New Delhi:
Two state-owned banks being picked up for privatization by the government are likely to come out with an attractive voluntary retirement scheme (VRS) to get rid of the extra flab, sources said.
Finance Minister Nirmala Sitharaman while unveiling Budget 2021-22 on February 1 had announced that the government proposed to take up the privatization of two public sector banks (PSBs) and one general insurance company.An attractive VRS will make them lean and fit for takeover by the private sector entities that are keen to enter the banking space, the sources said.
VRS is not a forced exit but an option for those who would like to take early retirement with a good financial package, the sources said adding that it has been done in the past before the consolidation of some of the PSBs.
The NITI Aayog, which has been entrusted with the job of identifying suitable candidates for the privatization, has recommended names to a high-level panel headed by Cabinet Secretary Rajiv Gauba.