The Saraswat Co-operative Bank Ltd (SCBL)-the largest multi-state co-op bank in the country, has decided to curtail 65 employees at its Nashik branches. The bank has said it has taken these steps due to inefficiency of these employees and to improve financial condition of its Nashik branches.

“With an aim to revive the deposits of 1.20 lakh depositors, Saraswat Bank had acquired the financially troubled Nashik-based Nashik People’s Co-op Bank with 14 branches and revived their deposits. This merger had cost the Bank at Rs. 66 crore. But, these branches could not get adequate business in the last 14 months and hence, the bank decided curtailment of the employees,” said Eknath Thakur, Chairman, Saraswat Bank, at a press conference, here at Nashik.

“Saraswat Bank had retained 162 employees of Nashik People’s Co-op Bank as per the Merger Agreement, chalked out according to directive of RBI and Co-op Dept, Govt of Maharashtra. Out of 162 employees, only 53 employees could prove their efficiency, while others could not. Hence, the Bank had announced VRS (Voluntery Retirement Scheme) for rest of the 109 employees three months back. Of which, only 44 employees had accepted the VRS. Hence, the Bank has decided to curtail 65 employees to improve the financial condition of its branches at Nashik,” Thakur said.

“Prior to acquisition of People’s Bank, the Saraswat Bank already had one branch near Rajiv Gandhi Bhavan in Nashik. There is huge gap in the business from Rajiv Gandhi Bhavan branch and other 14 branches of erstwhile Nashik People’s Co-op Bank. This Rajiv Gandhi Bhavan branch, which has 14 employees, achieved the business of Rs. 160 crore alone in last 14 months, while these 14 branches (of erstwhile People’s Bank) with 162 employees, could get only Rs. 230 cr. business during the same period,” he said.

“The bank’s (Saraswat’s) expenditure is at 9.25 per cent as it spends 7.25 per cent on deposits and 2 per cent on employees. Hence, it is not possible for the bank to give loan at 8 per cent interest rate,” he added.