Strike in public sector banks on Tuesday to paralyse operations

Public sector banking operations are likely to be hit on Tuesday due to a day-long strike called by the All India Bank Employees' Association and the Bank Employees Federation of India.

The unions informed the Indian Banks' Association of the proposed strike via a notice. The functioning of banks in Maharashtra and Haryana was affected on Monday due to polling for the assembly elections.

The move by both employee unions is largely a protest against the government's plan to merge 10 public sector banks (PSBs) into four entities with countrywide networks and global reach.

They are also protesting against falling interest rates on deposits and demanding job security, recovery of bad loans and stringent action for defaulters.

In regulatory filings at stock exchanges, the government-owned banks have said that necessary steps are being taken for a smooth functioning of the branches. If the strike materialises, the functioning of the branches may be affected or paralysed, they said.