New Delhi: Employees of public sector banks have begun a two-day nationwide strike on 22 August opposing banking sector reforms and outsourcing of non-core activities, affecting operations.

Several private sector banks, foreign banks and ATMs, however, continued to operate normally.

The strike call was given by the United Forum of Bank Unions (UFBU), an umbrella organisation of nine unions of employees and officers of PSU banks, protesting banking sector reforms and unilateral implementation of the Khandelwal committee report on human resources management in PSU banks. The strike has been called against government’s policies of liberalisation, privatisation and globalisation.

Bank unions are demanding stringent and effective measures to recover bad loans

“The strike is on since this morning. Nearly 10 lakh employees are participating in it. This includes 24 public- sector banks, 12 private banks and 6 foreign banks,” All India Bank Employees Association (AIBEA) General Secretary C H Venkatachalam told PTI.

He also said that ATM machines will work until they have the cash and thereafter those services will also be impacted.

“The strike is going on normally, demonstration will start by 10—10.30 AM. All the nine unions are participating in the strike,” said Rakesh Agarwal, General Secretary, SBI Officers Association.

Bank unions have been demanding pension revision, housing loan revision, a five-day working week and human resource related issues, Mr Agarwal said.

There are about 87,000 branches of public sector banks, employing over 10 lakh people. The PSU banks, which operate 63,000 ATMs, control about 75 percent banking business in the country. According to reports, operations like deposit, withdrawals as well as clearing were affected in public sector banks, including the largest lender State Bank of India, due to the strike.

Among other things, the trade unions are protesting against Banking Laws Amendment Bill which is pending in Parliament and implementation of the Khandelwal committee report.

The Amendment Bill, 2011 contains provisions such as raising of shareholders’ voting rights from 10 percent to 26 percent in private banks and supersession of bank boards.

The Centre-appointed Khandelwal panel had suggested a slew of measures, including more outsourcing of non-core activities in a time-bound manner.

Also, the standard of recruitment, including methodology and content for testing, has to be raised. Testing of computer skills will be mandatory for both officers and clerks, the panel had recommended.

The Khandelwal committee had also suggested that the minimum qualification for clerks and sub—staff should be graduation and class 10, respectively.

The unions which had given the strike call include All India Bank Employees Association, All India Bank Officers Confederation, National Confederation of Bank Employees, All India Bank Officers Officers Association, Bank Employees Federation of India, India National Bank Employees Federation, Indian National Bank Officers Congress, National Organisation of Bank Workers and National Organisation of Bank Officers are part of the United Forum of Bank Union.

In Mumbai, there was marginal impact of the strike.

SBI said it is too early to assess the impact on operations as the headquarters has not received any feedback from the branches.

An official of the Corporation Bank said employees belonging to the striking unions are absent from work, impacting the operations.

Union Bank, Central Bank and Bank of India said their branches have recorded thin attendance so far.

Old private sector banks like Federal and Dhanalaxmi Bank also said that their branches, being run by managers of Grade IV and below, are impacted due to the strike.

These banks typically have around half of their branches run by lower grade officers, who are part of the National Federation which is striking.

Meanwhile, banking transactions came to a halt in public sector banks in Punjab and Haryana, although private banks like HDFC, ICICI continued to operate.

The impact of the strike was visible on the industrial sectors of both Punjab and Haryana as industry representatives fumed over hampering of their business activities due to the two—day long strike by bank employees.

Industry representatives, particularly of the MSME sector, said they could not arrange funds for working capital requirements.

“The slowdown in the economy coupled with sluggish demand has already hit the industrial sector. Now, the strike will add to our woes. It is unthinkable to carry out any financial transaction without banks,” a Ludhiana based industrialist N.Bhamra said.

Due to the strike, cheques worth several crores of rupees remained uncleared in the public sector banks. Several banks’ asset recovery branches have even postponed the auction of loan defaulters’ properties.

Although customers who were aware of the strike call have managed transactions accordingly, many others visited banks only to find the branches closed.

According to reports, striking bank employees are carrying out protest rallies and holding demonstrations at several places in Punjab and Haryana.

“We will not allow the Centre to carry out the proposed banking reforms and implement Khandelwal committee report which recommended for outsourcing of non-core activities,” Punjab Bank Employees’ Federation, Secretary, Naresh Gaur said.

He said bank branches had been locked from outside to prevent the entry of any bank officer.

“Our intention is not to harass our customers by observing the strike. But the Union government does not listen to our demands which is why we resort to go on strike,” Gaur said.

“Banking Laws Amendment Bill is being brought in the Lok Sabha despite our protest”, he said.

The unions are also seeking settlement of their pending demands and an end to “arbitrary guidelines” of human resource issues, freeze on outsourcing of bank jobs, a hold over banking sector reforms and non-closure of rural branches.

Congratulating the striking bank employees, AITUC and CPI leader Gurudas Dasgupta said all central trade unions were planning to take their agitation on various issues afflicting the workers to “a much higher level” in the near future.

He said the major issues being raised by the bank staffers, who were being led by a united forum of all bank unions, included their opposition to the proposed banking bill, outsourcing, allowing FDI in the sector and giving foreign investors proportional voting rights and to seek filling up of vacancies.

In spite of the employees raising these demands at various fora and with the government, there has been no official response, he said.

Over 10 lakh bank employees in Bihar strike work

Over 10 lakh bank employees today went on strike in Bihar as part of the nation-wide agitation, bank union sources said.

The branches of all public sector banks in Bihar remained closed and the clearing house could not function due to the strike by the employees, Bank Employees’ Federation, Bihar BEFB) General Secretary B Prasad said in a statement.

The agitating employees staged dharna before their respective branch offices and took out rallies demonstrations in the towns in support of their demands, he said.

The striking employees were also pressing for regularization of the services of 70,000 workers recruited by the State Bank of India (SBI) as business correspondents and business facilitators, Prasad said.

Banking services hit in Tamil Nadu

Banking services in Tamil Nadu were hit as well as about 70,000 employees from 7,000 public sector bank branches participated in the strike.

The employees held demonstrations across the state as part of the protest, spearheaded by United Forum of Bank Unions, an umbrella organisation of nine unions of employees and officers of PSU banks.

According to C M Bhaskaran, Convenor, Tamil Nadu United Forum of Bank Unions, the government is going ahead with banking reforms and policies aimed at “diluting” the public sector banks. “Banking Laws Amendment Bill is being brought in the Lok Sabha despite our protest”, he said.