Hyderabad High Court to SBI not to finalize the options

Hyderabad, April 14: The Hyderabad High Court on Thursday directed the State Bank of India to temporarily halt its merger with its subsidiaries till concerns of all staff are addressed.

While hearing a motion moved by officers of the State Bank of Hyderabad and Associate Banks Officers Association, the bench asked the SBI, the Reserve Bank of India and the Finance Ministry to not act on the options provided by officers of the SBI subsidiaries till June 15.

The employees of the associate banks were asked to indicate whether they would opt for the SBI's Terminal Benefit Conditions or continue with the benefits presently available at their respective banks after the merger, according to The Hindu.

Those choosing SBI's policy would be entitled to provident fund, gratuity, and its Defined Contributory Pension Scheme, as available to SBI employees.

However, this will be applicable to only those who joined after April 1, 2010. The SBI's Special Compensatory Allowance and Special Balancing Allowance will also not be available to officers of subsidiary banks.