As part of HSBC India's plans to start 2004 "with a big bang" as it focuses on retail banking, the foreign bank has successfully realigned its staff structure.

Its second round of voluntary retirement scheme completed last month attracted applications from 514 employees among banking assistants and non-clerical staff.

This brings down the bank's staff strength to 2,800, and reduces the age profile as well as improves efficiency in the bank's operations.

HSBC country head and chief executive officer Niall Booker told Business Standard  that as "we want to be more in retail" it is necessary to initiate low cost processes.

"We thus had to deal with structural issues and we were already behind the competition," said Booker. HSBC's "generous" VRS package attracted more than the targeted 350 employees.

As a result of which, retirement of additional employees will be staggered over a period of time, he added.

In response to whether HSBC will recruit fresh personnel, Booker said: "We want to change the structure of the organisation so that there are more people operating on the selling and marketing side. As such, we are restructuring the skill set to drive sales and at the same time, restructuring the basic terms and conditions (of employment) to lower cost structure," he added.

Most foreign banks in the country have been cutting down on clerical staff and outsourcing various departments to other agencies  -- direct sales agents (DSAs).

This has been with a view to become a more efficient bank, providing better customer service. In the new banking era, the move is to push the sale of products through DSAs, as this works out to be a cheaper cost model.

"We are looking at recruiting different kind of employees, who have the sales and service skills," said Booker. He implied that new recruits would be taken on contract basis, and many departments are likely to be outsourced.

HSBC's voluntary retirement package was open to those who either completed 10 years of service or attained the age of 40.

On an average those in the age bracket of 38-40 took up the VRS offer. Against 1,600 staff in this cadre, 50 per cent of whom qualified, 514 employees took up the scheme.

Employees were offered 10-year pay based on their gross salary, against most banks' VRS package based on basic plus dearness allowance.