One Million Bank employees to go on strike on 22nd August

8 Aug 2017 Ferado

India: The United Forum of Bank Unions (UFBU), the umbrella organisation of five employee unions and four officer unions of state-run banks in the country, has given notice of their decision to go on nationwide strike on 22 August 2017 to protest reforms in the banking sector and other issues.

“The UFBU has observed that instead of taking urgent remedial measures to recover the alarmingly increasing bad loans in the banks which are threatening to drive the banks into a serious crisis. Steps like memorandum of understanding (MoU), prompt corrective action (PCA), Financial Resolution and Deposit Insurance (FRDI) Bill, Ordnance on non-performing assets (NPAs), and Insolvency and Bankruptcy Code (IBC) are only aimed to clean the balance sheets at the cost of the banks, which represent hard earned savings of the people, instead of recovering money,” says CH Venkatachalam, General Secretary of All India Bank Employees’ Association (AIBEA).

About 10 lakh bank employees from nine unions, AIBEA, All India Bank Officers Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers Association (AIBOA), Bank Employees Federation Of India (BEFI), Indian National Bank Employees Federation (INBEF), Indian National Bank Officers Congress (INBOC), National Organisation Of Bank Workers (NOBW) and National Organisation Of Bank Officers (NOBO) will observe the strike on 22nd August.

“We have given a strike notice. The strike will be on 22 August 2017 spread over the entire banking sector,” Mr Venkatachalam said, adding, “…it is observed that the burden of the corporate NPAs are put on the shoulders of the common public and banking clientele in the form of hike in fees, charges, and penalties for every type of normal banking services.”

Recently State Bank of India (SBI) and Bank of Baroda have reduced the rate of interest on savings deposits. SBI, the largest state-run lender in the country has said that they will gain Rs4,400 crore per year by reducing savings deposit interest but see how much they have sacrificed by write off of bad loans of big corporates, Mr Venkatachalam added.