Askari Bank Limited has announced a Voluntary Separation Scheme (VSS) for its regular employees aimed at bringing consolidation and efficiency in the operations and services of the organization.
VSS is being introduced for all regular employees from junior to senior level with generous financial compensation on top of end-of-service benefits to retiring staffers.
There are around 8,000 employees working at Askari Bank Limited on a contract or regular basis. The bank is operating with a network of 536 branches across the country and a wholesale bank branch in Bahrain.
Who Will Avail VSS?
According to the official notification, employees with a minimum of 4 years of service as regular staffers can opt for VSS and will get a minimum compensation of Rs. 0.5 million.
The criterion is the same for employees working in a subsidiary such as Askari Leasing Company. The maximum age limit for VSS is 57 years till January 21, 2022.
Senior Vice President and higher-ranked employees can not avail this scheme whereas employees working in a foreign branch are also ineligible for the VSS.
However, applying to the scheme is no guarantee that the separation from the organization will be approved as the management will decide VSS for employees after reviewing their application.
Compensation Under VSS
The VSS application is open for a period of 8 days starting January 21 to 28, 2022.
The following financial payout will be offered to staff opting for VSS:
Payout= Adjusted Payout Multiple * Basic Salary (As of Jan 21, 2022)
Adjusted Payout Multiple = Lesser of Payout Multiple OR Grade Payout Cap
Payout Multiple= (Number of years of completed service) * (Grade Multiple)
The minimum payout is set at Rs. 500,000 for employees of all grades. In addition to the compensation, employees will also be provided compensation on the account of provident fund, gratuity, leave encashment, executive car maintenance, and tax refund (for AVP/ VP only), the official notification said.
The VSS allowance and other compensation will be liable to deduction of income tax at source. The final settlement of the payment will be done within the next two weeks after all formal clearances of the employee.
The management has clarified that the VSS is being launched as a very special case under exceptional circumstances but it will not create a future precedent for the bank in any way.
HR Transition at Askari Bank
The bank witnessed a transition of leadership from the top office as the renowned banker Atif A Bokhari took over as the CEO and President of the bank last year replacing Abid Sattar as the top banker in the mid of 2021.
The decision of rightsizing or downsizing of human resources has been taken place under the new president, however, the consultations were made before him as a part of the 3-year strategic plan of the bank towards the improvement of the bank’s operations and standards of services, which also included the improvement of human resource efficiency at the bank.
Earlier this year, we (the management) outlined a vision to make Askari Bank a responsible, customer-focused bank that provides inclusive and progressive financial services. The bank’s vision is to build a long-term customer relationship by delivering a transformative, innovation-driven customer experience, and by shaping opportunities that grow shareholder’s value. Today, however, we find ourselves at an inflection point. Fast-changing consumer behaviors and technological changes have prompted us to rethink our operating model, the official notification said.
Askari Bank remained a high-performing bank in the banking industry which reported the highest-ever profit of Rs. 10.8 billion in 2020 and became a part of the country’s top ten profitable banks.
In the subsequent year, the bank did not continue its profitability but witnessed a negative growth of 16% in the three quarters of 2021.
Source: Pro Pakistani
