Bank strike impacts PSU banks’ operations

Reported by: |Updated: May 31, 2018

Bank strikeBanking operations in India were affected as some 10 lakh bank employees, primarily from the public sector banks, went on 2-day strike from 30 May to protest against what they defined as a ‘meagre’ 2% increase in salaries offered by the Indian Banks Association (IBA), which is the apex management organization for banks in the country. While operations at the public sector and the old generation private sector banks were affected seriously, the new general private banks could continue to function in near normal terms. However, cheque clearing was impacted very badly. Some estimates said just 25% of all the bank branches could function. However, about 80% of ATMs were dispensing cash. The impact of strike in certain states like Kerala, West Bengal, Bihar and Jharkhand was more severe compared to other states. The strike also coincided with the month-end, salary withdrawals from branches.