Janata Bank looks to shed 4,333 jobs in four years

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Shakhawat Hossain
Janata Bank Limited (JBL) looks to shed 4,333 jobs over a period of four years under the proposed voluntary retirement scheme (VRS), which was placed to the Finance Ministry for its approval Thursday.
The second largest state-owned commercial bank has designed one of the biggest job cuts in the country's banking history in line with suggestions of the World Bank aimed at a comprehensive reform.
Janata Bank with its existing 13,331-strong manpower was turned into a public limited company in November last under a donor-driven bank modernisation project.
"The proposed voluntary retirement scheme is aimed at creating new and efficient manpower," according to the proposed VRS.
The planned retrenchment programme of the JBL would require more than Tk 5 billion (500 crore) and the fund will be made available from the bank modernisation project, said a senior finance ministry official.
The official also said Sonali Bank Limited, the country's largest state-owned bank, will also offer such a VRS plan to its officials and employees.
Agrani Bank Limited, the smallest among the state-owned banks, has, however, no such requirement to trim its manpower, he added.
JBL will identify officials and employees, who are already in service for more than 10 years, for the golden handshake programme.
The VRS will offer two options, the first under the contributory provident fund (CPF) and the other under the general provident fund (GPF).
The CPF beneficiaries will receive salaries of two months, additional leave excluding the leave preparatory retirement (LPR) and the benefits under the VRS package.
On the other hand, the GFP beneficiaries will get additional financial benefits on the basis of service tenure in addition to general provident fund, leave encashment, LPR and pension.
The additional financial benefit will be 30 per cent of the total VRS package for the service holders already in service for 15 years. It will be 25 per cent, 20 per cent and 15 per cent for the officials and employees serving for 20, 25 and more than 25 years respectively.
Those who will accept VRS will not get medical allowance, festival bonus and other benefits in the future.
The bank's VRS criteria are almost similar to the golden handshake offered to the officials and employees of the Rupali Bank Limited.
Last year more than 500 officials and employees of the Rupali Bank Limited, in which the government has the majority stake, were offered the golden handshake under the same bank modernisation project.
The majority stake of the government in Rupali was put on sale to privatise it. But the attempt, initiated in 2005, was suspended last year after the final negotiation with a Saudi prince failed.