EXHIBIT 4.4
ICICI Bank Limited
June 17, 2003
Early Retirement Option 2003
1 Short title
This scheme shall be called "The ICICI Bank Early Retirement
Option, 2003" (hereinafter referred to as "the Scheme").
2 Need for introduction of the Scheme
The competitive landscape has been changing very rapidly particularly in
the last couple of years. There has been a paradigm shift in the
competitive environment necessitating a fresh look at the business
strategies we adopt and implement. This leaves a significant impact on the
way we do business, and on all other components of the organization -
including its employees. A combative multi-pronged strategy to out-execute
competition is the need of the hour. Additionally, capability and skill
enhancement of employees requires a priority attention. Appropriate
response from employees is crucial for achieving the organizational goals.
Some of our employees find the current environment too pressurizing. Many
of them, who have been with the organization for a long period of time
have regularly expressed a desire to have an early exit option. The Scheme
is being introduced in response to the competitive environment on the one
hand and the desire of employees on the other.
3 Definitions
In this Scheme, unless the context otherwise requires:
a) "Bank" means ICICI Bank Limited.
b) "Employee" means a permanent employee on the rolls of the Bank as on July
1, 2003.
c) "Eligible Employee" means an Employee satisfying the eligibility criteria
set forth in Clause 4 hereof.
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d) "Years of Age", for the purpose of Clause 4 hereof dealing with
Eligibility, means number of years completed by the Eligible Employee as
on July 31, 2003, from the date of birth of the Eligible Employee as per
the records of the Bank.
e) "Years of Service" means number of years of service completed by the
Eligible Employee as on July 31, 2003, from the date of his joining the
services of the Bank as per the records of the Bank.
f) "Remaining Months of Service" means number of months of service remaining
of the Eligible Employee as on July 31, 2003 till the time of his normal
retirement date.
g) "Retirement Date" means July 31, 2003.
h) "Salary" means the Basic Salary and Dearness Allowance, if any, drawn by
the Eligible Employee for the month of July 2003, but shall not include
any other amount or allowances or benefit whatsoever. Notional increment
due upto September 30, 2003 to the eligible employees will be considered
while arriving at their ERO benefit.
1 Eligibility
All permanent employees of the Bank who have completed at
least 7 Years of Service and are 40 years of age as on July 31, 2003 will
be considered eligible to opt for the benefits under the Scheme. For the
purpose of this clause, the services rendered by the permanent employees
in the organisations merged with the Bank will be considered as eligible
service in terms of respective schemes of amalgamation.
2 Duration
The Scheme will remain open from the commencement of office hours on
July 01, 2003 till the close of office hours on July 31, 2003.
3 Acceptance of application under the Scheme and Retirement Date
Applications received till the date of the closure of the Scheme shall
be deemed to have been accepted on the date of the closure unless
rejected on or before the closure date of the Scheme. The Eligible
Employees whose applications have been accepted by the Bank shall
stand retired from the services of the Bank with the close of office
hours on July 31, 2003.
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7 Early Retirement Benefit
Eligible Employees would, subject to the terms and conditions of the
Scheme, be eligible to receive the benefits as set out in clauses
8A/8B, 8C and 8D hereof as may be applicable.
8A One time Cash Benefit
An Eligible Employee shall be entitled to the following benefit,
subject to applicable tax deduction at source:
(i) 3 months' salary for every completed year of service, or
(ii) Salary for the Remaining Months of Service, whichever is less.
(For the purpose of this clause, any fraction of the year of service
of 6 months and above will be rounded off to the next higher unit,
e.g. completed service of 10 years and 7 months as on July 31, 2003
will be considered as 11 years of completed service for computing
benefits under the Scheme.)
The above payment is subject to an overall limit of Rs. 20 lac (Rupees
Twenty Lac) for employees in the grades of Joint General Manager and
below, and Rs. 25 lac (Rupees Twenty Five Lac) for employees in the
grades of General Manager and Senior General Manager.
8B Pension Benefit
Subject to applicable tax deduction at source, if the Eligible
Employees so desire, provided there are adequate number of such
Eligible Employees, the Bank may consider providing a pension benefit
less applicable tax, if any, to Eligible Employees as an alternative
to one time cash benefit mentioned in Clause 8A. The pension benefit
will be payable monthly for life with a guarantee period of 20 years.
The quantum of monthly pension will be determined as per the following
formula:
Cash Benefit as calculated in Clause 8A above x Factor R (based on age
of the employee). Factor R is set-out in Annexure to this document.
Eligible employees opting to receive benefit under the above clause
(clause 8B) will also be entitled to opt to commute a part of pension
not exceeding 331/3%. In the event of the eligible employee opting to
commute a part of the pension, he will be paid the commuted value as
computed by the Company's Actuary as a lumpsum and shall be entitled
to a pension reduced by the percentage of pension so commuted. The
commuted value payable will be free of income-tax.
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8C Other Benefits
An Eligible Employee shall also be entitled to the following benefits,
subject to applicable tax deduction at source:
(i) Group Medical insurance cover of Rs.4,00,000 (Rupees Four
Lac) per annum, will be extended to each Eligible Employee
upto his normal date of retirement.
The insurance cover will be available for the Eligible
Employee, his spouse and dependant children upto the age of
24 years but shall not exceed a number of four including the
eligible employee; total insurance cover being not over
Rs.4,00,000 (Rupees Four Lac) per annum. After reaching his
normal date of retirement, the insurance cover will be
available for the eligible employees and his spouse only,
total insurance cover being not over Rs.2,00,000/- ( Rupees
Two Lac) per annum.
(ii) Encashment of balance privilege leave (as per leave rules)
and unclaimed Leave Travel Allowance, if any, standing to the
credit of the Eligible Employee on the Retirement Date.
Encashment of balance sick leave (as per leave rules), if
any, standing to the credit of the eligible employee, upto a
maximum limit of 180 days.
(iii) Amounts payable on Retirement Date under the Bank's
Provident, Gratuity, Superannuation Funds, and Pension /
Family Pension Scheme, if any, as per the Rules of the
respective Funds/Schemes of the Bank or Statutory Provident
Fund Authority as the case may be.
8D Pension Benefit
The Eligible Employees who have opted for pension benefit as per
the erstwhile Bank of Madura Employees' Pension Regulations, 1995,
will be eligible for the same as per the terms and conditions of the
said Regulations. However, the eligible employees who have opted for
Pension under the sad Pension Regulations and have completed / will be
completing 20 years of service on the Retirement Date will be entitled
for pension from the Retirement Date, subject to sanction/approval of
the necessary amendment to
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the said Pension Regulations from the Competent Authority under the
Income-Tax Act.
9 Other terms and conditions
Payment of Early Retirement Benefits under the scheme shall be made subject
to:
a) deduction of tax at source as may be applicable;
b) deduction of other statutory dues as may be applicable;
c) deduction of outstanding dues of the Eligible Employee to the Bank;
d) return/surrender to the Bank on or before July 31, 2003, of all
Bank's assets and properties including the Bank quarters, if any,
in the possession/occupation of the Eligible Employee; and
e) refund of security deposit paid by the Bank for the leased
accommodation provided to the Eligible Employee, as the case may
be.
Similarly, Retirement benefits such as Provident Fund,
Gratuity and commuted pension under the Superannuation Scheme
where applicable, Leave Encashment and unclaimed Leave Travel
Allowance, if any, would be paid to the Eligible Employee upon
his handing over vacant possession of the Bank quarters or
refund of security deposit for the leased accommodation as may
be applicable.
(f) repayment in full of all the loans availed by the Eligible
Employee. The Bank may, in its sole and absolute discretion,
permit any or all the loans outstanding or any part thereof to
continue subject to applicable tax deductions and inter alia, on
the conditions that :-
i) any or all the loans outstanding or any part thereof so
allowed to be continued shall carry the presently
applicable interest rate or the applicable weighted
average interest rate, as the case may be; and
ii) the repayment of any or all the loans outstanding or
any part thereof together with interest at the rate
mentioned in the clause (i) above, on such other
suitable terms and conditions stipulated by the Bank,
may be continued until the normal date of retirement of
the Eligible Employee or the date on which he was
scheduled to have repaid the entire loan or on any
other earlier date specified
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by the Bank, subject to the Eligible Employee furnishing
additional security, as may be stipulated by the Bank.
10 The Bank reserves the right to accept or reject any application
received under the Scheme without assigning any reason whatsoever. The
Bank's decision in this matter shall be final and binding on all
concerned.
11 The acceptance or rejection of the application under the Scheme shall
not be liable to be questioned or challenged by any employee or his
heirs/executors/administrators/nominees, as the case may be, in any
proceedings under any Industrial, Civil or any other law.
12 In case of any ambiguity, doubt, dispute or difficulty regarding the
interpretation, calculation of benefits or the implementation of the
Scheme, the decision of the Bank shall be final and binding on all
concerned.
13 It is expressly made clear that the Eligible Employee will not be
entitled to any other benefits whatsoever except those that are
specifically mentioned herein.
14 All references in the Scheme to the masculine gender include feminine gender
and vice versa.
15 This Scheme is a one time special offer and shall not be construed or
treated as having become a condition of service of employees nor shall
this Scheme be treated or relied on as a precedent or a custom or a
usage or a practice at any time in future.
16 Procedure
An Eligible Employee, who is desirous of opting for the Scheme, is
required to make an application in the prescribed form (Annexure I)
attached herewith. The forms are also available with the concerned
Zonal Office, Regional Office, Branch Office and Head of Department or
HR Department. The application should be completed in all respects and
signed and submitted to the respective Branch Manager, Regional Head,
Zonal Head, Department Head or General Manager, HR Department on or
before closure of office hours of July 31, 2003.
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Full and final payment under the Scheme will be made on or before
August 8, 2003. However, if an Eligible Employee requests for a part
payment, 10% of the one time cash benefit under the scheme will be
paid on the next working day after the closure of the Scheme.
17 The Bank will have the right to administer various benefits under the
Scheme through any outside agencies that may be appointed by the Bank
for this purpose.
********
Annexure I
Name :_________________________________
Emp.No. :_________________________________
Grade :_________________________________
Department/ :_________________________________
Branch
Date :_________________________________
The Branch Manager/Regional Head/Zonal Head/Dept. Head/General Manager
ICICI Bank Limited
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Dear Sir:
ICICI Bank Early Retirement Option 2003
1. I refer to the ICICI Bank Early Retirement Option 2003 and being
desirous of opting for the same hereby apply to voluntarily retire
from the services of the Bank on the terms and conditions specified
under "The ICICI Bank Early Retirement Option 2003" ("the Scheme")
announced by the Bank.
2. I note and agree that acceptance or rejection of my application for
early retirement under the scheme is at the absolute discretion of the
Bank.
3. In the event of the Bank accepting my application under the Scheme, I
would like to avail of benefit as indicated below:
a) Receive One time cash benefit in terms of Clause 8A of the Scheme.
OR
b) Receive monthly benefit in terms of Clause 8B of the Scheme
for the specified period as may be permitted through the
annuity scheme of the Insurance Company, the Bank may select.
I understand that if there are no adequate number of
employees opting for monthly benefit under the annuity, no
such benefit will be made available. In that case, I shall be
deemed to have opted to receive one time cash benefit under
(a) above.
(Please put a tick against your option; and strike off the other options
under your signature).
: 2 :
1. I agree and confirm that upon acceptance of this application under the
Scheme, I will have no further claims and /or rights on the Bank
except for the benefits under and subject to terms and condition of
the Scheme.
2. I understand that full and final payment of benefit under the Scheme
will be made on August 08, 2003. In the meanwhile, I request you to
pay me 10% of one time cash payment as mentioned in Clause 8A of the
Scheme, on the next working day after the closure of the Scheme as
applicable to me subject to tax deduction as mentioned in the Scheme
by crediting the same to my salary S/B A/C
No.__________________________. I also understand that on payment of
this amount to me, my monthly benefit amount, if applicable, will be
appropriately adjusted.
Yours faithfully,
(Signature)
Acknowledgement
Received application under "The ICICI Bank Early Retirement Option 2003" from
Mr/Ms. ________________________________________ Emp.No:- __________ of
__________________________ Branch / Department/Office.
Name :-
Designation :-
Signature :-
Date of Receipt :-
Annexure
ICICI Bank Ltd.
Age last birthday Factor R
40 0.0058083
41 0.0058583
42 0.0059083
43 0.0059583
44 0.0060083
45 0.0060667
46 0.0061250
47 0.0061750
48 0.0062333
49 0.0063000
50 0.0063583
51 0.0064167
52 0.0064833
53 0.0065500
54 0.0066167
55 0.0066833
56 0.0067500
57 0.0068083
58 0.0068750
59 0.0069417
60 0.0070083