Nation-wide bank strike hits 2,300cr transactions in state

AHMEDABAD/VADODARA: Normal banking operations were hit in the state as bank employees from Gujarat joined the nation-wide strike called to protest against merger of five associate banks with State Bank of India and privatization of IDBI Bank. Financial transactions of over Rs 2,300 crore were affected in the state on Friday.
"In Gujarat, nearly 70,000 bank employees observed the strike and clearing of Rs 2,300 crore was paralysed in the state," said Janak Rawal, general secretary, MahaGujarat Bank Employees' Association.
Employees of public sector as well as old private sector banks in cities like Ahmedabad, Surat and Rajkot participated in the one-day strike. More than 3,000 employees took out a 'scooters rally' in Ahmedabad.
Over 10 lakh employees across the country went on a strike called by United Forum of Bank Union, a representative body nine unions of bank employees and officers.
In Vadodara city, financial transactions worth Rs 400 crore got hit with nearly 5,000 bank employees and district joining the strike. Services like cheque clearances, cash deposit and withdrawal at branches and other facilities were hit because of the strike. However, there were no disruptions at ATMs in the city even as private sector banks were working as usual.
UFBU had given the strike call to oppose government's decision to privatise IDBI Bank and decision to merge the five associate banks of the State Bank of India (SBI).
The unions could not take out a rally as it could not get police permission, but the employees joined the strike call by staying away from work.
"The government is merging public sector banks and at the same time giving licences to corporate houses to start banks. We are opposing such privatization," said UFBU's Vadodara convener D L Vyas.
According to the unions, inadequate infusion of capital in public sector banks will result in reduction of government's equity capital and create compulsion for higher extent of private capital leading to privatisation of banks.
UFBU has also accused the government and the Reserve Bank of India of not taking tough measures to recover bad loans.
"We want the names of defaulters to be published. Wilful and deliberate defaulters should be declared as criminal offenders and punished," said Vyas.