The Hindu Business Line : Strike cripples banking operations

BANKING operations throughout the country were hit today as public sector bank employees struck work demanding a wage revision. Cheque clearing, forex transactions and trading in government securities were affected.

According to an RBI spokesperson, 30 banks did not participate in the Mumbai clearing house operations. Normally, 112 banks participate in the operations. The value of cheques cleared dropped to Rs 1,400 crore from the average of Rs 8,900 crore on a normal working day.

Inter-bank high-value cheques cleared were merely 75 in number worth Rs 33 crore, against around 600 cheques worth Rs 960 crore on normal days. Number of instruments traded also plunged to 3,600 from 12,000.

RTGC transactions were only 478 worth Rs 8,830 crore, against the normal daily average of 1,400 transactions worth Rs 11,000 crore.

According to the United Forum of Bank Unions (UFBU), the existing wage pact was concluded in 2000 and had expired in October 2002. The forum has been negotiating with Indian Banks' Association (IBA) since July 2, said a press release. The unions are demanding a 20 per cent rise in wages while IBA has agreed to a 9.5 per cent hike.

Nine lakh employees, including officers participated in today's strike, the forum said.

Some branches functioned with skeleton staff.

A treasury official at one of the state-run banks said regular treasury operations came to a halt, but a few orders were given and positions were covered which if not dealt with would have resulted in substantial loss.

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