The IBA will hold the first round of discussion with the United Forum of Bank Unions (UFBU) -- the umbrella organisation of bank unions--on March 23 and 24 on the staggered implementation of the pact. The formal wage pact is likely to be signed in June.

The bankers' body managed to convince the unions in accepting a 12.25 per cent wage hike on late Thursday night and signed the memorandum of understanding (MoU) after protracted negotiations spanned over the last two days, thereby averting the threat of an indefinite industry strike from March 17.

The annual burden on the banking industry will be Rs 1396.50 crore due to the 12.25 per cent wage hike. "The weaker banks may sink under the burden,"a senior banker said. The annual burden on Uco and UBI -- which have large workforce-- will be over Rs 60 crore each, sources said.

For the State Bank of India, which has a annual wage bill of about Rs 3,000 crore, the additional burden will be to the tune of Rs 450 crore. The bank had made a provision of Rs 100 crore towards wage revision in 1997-98 balance sheet.

"To protect the bottomlines of the weaker banks, the new wage pact may not be implemented with effect from November 1997 uniformly in the industry," sources said. Indian National Bank Officers' Congress (Inboc) leader KK Nair said the weak banks will offered staggered arrears payment to their employees. "The unions will go all out to support the management of weak banks to turnaround," Nair said.

The UFBU carried out victory rallies to celebrate the signing of seventh bipartite settlement for which the negotiations were on over 16 months from November 1997. This is the seventh bipartite settlement which will be in effect till November 2002.The pact covers over 4,51,0000 clerical staff, 1,84,0000 subordinate staff and 2,20,000 officers.

All India Bank Employees Association (Aibea) secretary Suresh Dhopeshwarkar: "Despite the adamant stand of the IBA, with string of strikes and agitations we have been successful in raising the IBA offer of a 8 per cent wage hike to 12.25 which bringing in an additional inflow of Rs 454.50 crore wage for the employees. Though the bankers were insisting on a bankwise settlement the united strength of the bank unions has managed to bring about an industry wide settlement."