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PSB operations to be affected as 1 million bank employees on strike today

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

Press Trust of India  |  Mumbai 

FinMin's Alternative Mechanism gives nod for BoB, Dena, Vijaya Bank merger

operations will be affected Wednesday as close to 1 million employees of various public sector and some of the private and foreign are on a day-long strike to protest against the proposed merger of and with of Baroda.

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

In September, the government had announced merger of state-owned and with the larger peer

The merged entity will have a combined business of Rs 14.82 trillion, making it the third largest bank after (SBI) and

The unions are claiming that the merger is not in the interest of or their customers and will in fact be detrimental to both.

The government wants to grow in size through this amalgamation but even if all are bundled into one, the merged entity cannot find a place among the top 10 globally, said United Forum of Bank Unions (UFBU), which has called for the one-day strike.

"This merger will see a large number of branches getting closed and customers will have to face hardships as already banks are burdened with the implementation of various government schemes such as Jan Dhan Yojana, Mudra, social security insurance, and Prime Minister's housing scheme, among others," the union said.

UFBU is an umbrella organisation of nine unions, including the All-India Bank Officers Confederation, the All- India Bank Employees Association and the National Organisation of Bank Workers, among others.

Last week, public sector lender said the 'alternative mechanism' of the ministry had accorded in-principle approval for its merger with and

The 'alternative mechanism' headed by Minister had decided to merge the three banks with a view to create a lender with considerable size, which will be stronger and sustainable.

The merger comes after the largest lender SBI merging its five subsidiary banks and taking over the last year, which catapulted it to be among top 50 global lenders.

Last week, around 320,000 bank officers from various were on a one-day strike opposing the proposed merge and also seeking immediate wage revision.

Bank managements have mandated the industry lobby Association (IBA) to negotiate the wages for employees in the scales 1-3 but the unions want this to be raised up to scale 7.

The wage talks are on for the past 13 months between the unions and IBA, the latter has offered a wage revision of 8 per cent.

In the past wage settlement, which was for the period from November 1, 2012 to October 31, 2017, the employees got a 15 per cent hike.

First Published: Wed, December 26 2018. 09:40 IST