Bank strike: Cheque clearances worth Rs 16,500 crore affected on first day, claim unions

Calling the first day of the bank strike on March 15 a success with participation from over a million employees, bank unions claimed the clearance of about two crore cheques/instruments worth about Rs 16,500 crore were affected.

After the first day of the two-day bank strike, the All India Bank Employees' Association (AIBEA) announced it as a "grand success" and called on the participating employees to "maintain the tempo and enthusiasm" on the second day as well.

"On average, about 2 crore cheques/instruments worth about Rs 16,500 crore are held up for clearance. Government treasury operations and all normal banking transactions have been affected," CH Venkatachalam, General Secretary, AIBEA told IANS.

Over a million bank employees struck work expressing discontent over the government's decision to privatise its banks.

The United Forum of Bank Unions (UFBU), an umbrella body of nine unions called for a bank strike across the country on March 15 and 16. Finance Minister Nirmala Sitharaman announced in her Union Budget speech privatisation of two Public Sector Banks (PSBs) as part of its disinvestment plan.

The government has already privatised IDBI Bank by selling its majority stake in the lender to LIC in 2019 and has merged 14 public sector banks in the last four years.

"As per reports reaching us from various states, banking operations have been affected and paralysed in all centres," Venkatachalam said.

"The strike to save the savings of our people. The strike is to ensure more loans to priority and weaker sections," he added. He had also revealed that during 2019-20 the operating profits of government banks were Rs 1,74,336 crore, provision for doubtful debts Rs 2,00,352 crore and the net loss stood at Rs 26,016 crore, adding that banks are making operational profits and they are showing net loss owing to provisions because of the corporate borrowers' defaults.

[Inputs from agencies]