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  Business   Companies  31 May 2018  Bank strike may cost Rs 20,000 crore

Bank strike may cost Rs 20,000 crore

PTI
Published : May 31, 2018, 2:11 am IST
Updated : May 31, 2018, 2:11 am IST

The chamber also urged the government to come up with a stimulus plan for restoring the health of public sector banks.

Consequently, banking activities in public sector banks across the country have been interrupted.
 Consequently, banking activities in public sector banks across the country have been interrupted.

New Delhi: The two-day nationwide strike by employees of public sector banks (PSBs) may affect customer transactions worth up to Rs 20,000 crore, Assocham said on Wednesday, urging the United Forum of Bank Unions (UFBU) to call off the strike.

The chamber also urged the government to come up with a stimulus plan for restoring the health of public sector banks.

 

State-owned lenders are grappling with high levels of bad loans and as per reports their losses for the quarter ended March 2018 are set to hit a record Rs 50,000 crore which is more than double the losses of Rs 19,000 crore in preceding quarter ended December 2017, Assocham said.

“Considering such a precarious situation, we at Assocham would urge the government to come up with a stimulus plan which must include restoring the PSBs to health,” Assocham secretary general D.S. Rawat said.

“With about 10 lakh bank employees going on strike, banking operations such as cheque clearances, cash withdrawals and deposits at PSB branches across India will be affected,” he added.

 

The UFBU, an umbrella body of bank unions, has gone on strike against the proposed wage hike of 2 per cent as against 15 per cent given last time, AIBEA general secretary C.H. Venkatachalam said.

Consequently, banking activities in public sector banks across the country have been interrupted.

However, operations in the new-generation private banks like ICICI Bank, HDFC Bank, Axis Bank were almost normal, barring few activities including cheque clearance.    

Tags: chamber, united forum of bank unions, public sector banks