Mumbai, Aug 05: UTI Mutual is planning to offer VRS to 1,600 employees. Sources said that a discussion towards this end will be taken up during the board meeting scheduled for August 6. UTI Mutual, which currently has a staff strength of 2,400, plans to reduce its overhead to compete with other private sector competitors.

UTI spokesperson said that the agenda for the board meeting has not yet been finalised while declining to comment on the funds’ VRS plans.

"UTI Mutual is planning a VRS for its employees though we do not know the details of the package," said a source. The government, in its agreement with the sponsors of the UTI Asset Management Company has incorporated a provision for a golden handshake to UTI employees. The agreement has stated that the government will absorb the cost of the severance package thereby offering a leeway to trim excess flab of the fund.

Sources said that the fund may offer one-month pay for the remaining years of service which is seen as an attractive option. Bureau Report