InvestorQ : Is it true that banks are going on a strike in September and what will it imply?
prachi Patwardhan made post

Is it true that banks are going on a strike in September and what will it imply?

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11 months ago

The All India Bank Officers Association (AIBOA) has given a call for a 2-day strike by four major unions of the PSU banks on 26th and the 27th of September. This strike is being called against the proposed merger of 10 PSU banks into 4 PSU banks as announced by Nirmala Sitharaman last week. According to the consolidation exercise, United Bank of India and Oriental Bank of Commerce will be merged with Punjab National Bank, making the proposed entity the second largest public sector bank. Syndicate Bank will be merged with Canara Bank. Allahabad Bank will be merged with Indian Bank and Andhra Bank will be amalgamated with Corporation Bank and Union Bank of India

Bank officers believe that this merger will result in the unnecessary reduction of branches and employees. While the FM has assured that jobs will not be cut, unions are of the view that once the merger is completed, there will be no choice but to go for consolidation and that will require reduction of branches and employees and consolidation of many support services.

While PSU banks will join the strike, the private banks will outside the ambit of this strike. However, clearing services could get impacted where one of the counterparties is banking with a PSU bank and that could cause unnecessary delays. Also, 26thand 27th are Thursday and Friday. Then you have second Saturday and Sunday and September 30th is half yearly closing. Hence, there will have to be proper exigency planning well in advance.

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Dawn Cherian answered.
11 months ago

According to one of the recent report, the meeting with the Union Finance Secretary Rajiv Kumar, bank unions came with the declaration to call off two days bank strike (26-27th September 2019) that was held this week.
The bank strike aims to shut off all the banking networks for all four days of the strike against the recent declaration of 10 state-run lenders into four.