New Delhi: The services of state-owned banks will remain impacted on Wednesday as a nation-wide strike was launched against the proposed merger of Vijaya Bank and Dena Bank with Bank of Baroda. This is the second bank strike in less than a week. Meanwhile, the private sector banks will continue to function as usual.

The nation-wide strike would impact banking services like deposits and withdrawal at branches, cheque clearances and issuance of demand drafts, among others.

Thousands of bank employees took to roads in Tamil Nadu’s Coimbatore on Wednesday in the wake of one-day strike called by nine bank associations. 10 lakh bank employees and officers of the 21 public sector banks, old generation private banks and foreign banks, under the banner of the UFBU will join the one-day strike. Most of the banks have already informed customers about the strike.

Here’s All You Need to Know About Bank Strike:

  • The nation-wide bank strike has been called by nine bank associations against the proposed merger of Vijaya Bank and Dena Bank with Bank of Baroda.
  • 10 lakh bank employees and officers of the 21 public sector banks under the banner of the United Forum of Bank Unions (UFBU) will join the one-day strike.
  • The nine bank associations under UFBU include, All India Bank Officers Confederation (AIBOC), the All India Bank Employees’ Association (AIBEA), National Confederation of Bank Employees (NCBE) and the National Organisation of Bank Workers (NOBW), among others.
  • Wednesday’s strike is the second bank strike in less than a week.
  • The unions claim that the government wants banks to grow in size by such mergers but even if all public sector banks are bundled into one, the merged entity will not find a place among the top 10 globally.
  • The conciliation meeting called by Additional Chief Labour Commissioner did not lead to any assurance and so the unions are going ahead with the strike, claimed AIBEA General Secretary CH Vekatachalam.

The first strike in this month was observed on December 21 when an officers’ union of state-run banks launched a protest against the merger and also demanded immediate settlement of wage negotiations.

The government in September approved the amalgamation of Bank of Baroda (BoB), Vijaya Bank and Dena Bank — the first three-way merger in the public sector banking space.

The move follows top lender State Bank of India last year merging five of its subsidiary banks with itself and taking over Bharatiya Mahila Bank, catapulting it to among the top 50 global lenders.

On wage revision, NOBW Vice President Ashwani Rana said that it is due since November 2017. So far, Indian Banks’ Association (IBA) has offered 8 per cent wage hike which is not acceptable to UFBU, he said.