"This was final and it was a tremendous success," chairman DN Ghosh told The Financial Express. When the VRS was offered, Peerless had a total of around 4500 employees.

Elated by the success, Mr Ghosh rubbished claims by the All India Peerless Employees' Union that the management had used "terror tactics" to push through the VRS.

General secretary Anudeb Ghosh of the Citu-affiliated All India Peerless Employees Union admitted that around 2500 staff members including officers had accepted the VRS. But he said the management had held out the fear of job losses and transfers to coerce them into accepting the VRS. "It seems that the management's target for the VRS is sky-high," he said. As for the monetary benefits, he said no one stands to get more than Rs 4-5 lakh after deductions of loans taken from the company. However, chairman Ghosh said he had taken care so as to propose an unique pension scheme over and above the compensation package. The chairman also pointed out that the management has also offered to deploy them as agents which would ensure an average monthly income of around Rs 4000.

Mr Ghosh, a former chairman of State Bank of India, pointed out that he had little option - either to close down branches and turn viable or propose a VRS - in line with the diktat of the Reserve Bank of India.

The chairman noted that the success of the VRS has given him an "opportunity to restructure the business all over the country to make it highly competitive in the finance industry". The restructuring exercise has been planned and is being implemented.