"We are aggrieved by the Verma panel report and its anti-employee proposals. The report does not even touch the fundamental issue of non-performing assets (NPAs) plaguing the banking system and simply passes on all the blame to the employees," the general secretary of the All India Bank Officers' Confederation (AIBOC) SR Sengupta told The Financial Express.

However, the bank unions, which met in Mumbai on Tuesday to take stock of the situation, could not decide on the future course of action. "We will do that within a week," Sengupta said.

The unions had earlier rejected all proposals put forward by the working group on restructuring weak public sector banks, headed by former State Bank of India chairman MS Verma. They were even contemplating an indefinite bank strike. "This option of going on strike is still open to us," AIBOC president, Shanta Raju said.

The unions are expected to deliberate on the Verma panel proposals after sorting out the wage negotiations with the Indian Banks' Association (IBA). The next two days are therefore crucial as the unions and the IBA once again sit on the bargaining table to solve the stalemate. This is in stark contrast to the unions' earlier stand: "Let us first fight it out on the Verma panel issues -- the wage pact can wait. We cannot accept job cuts."

The unions have been arguing that costing of pension for purpose of wage revision should be restricted to only 10 per cent of the basic pay per annum and the additional cost of 16.5 per cent cannot be carved out of the wage packet. IBA has been adamant that pension costing is non-negotiable at 26.5 per cent. However, in a surprising development, both the warring factions appear to have mellowed down on this issue and a subtle give-and-take is expected over the next two days.

"The bankers' body is pressing for the trade unions' nod on large-scale computerisation and intra-state transfers of bank employees. In return, the IBA is expected to do a rethink on the issue of distribution of load on account of pension scheme," IBA secretary, MN Dandekar said.

On their part, the unions appear to be open to the suggestion that wage revision be fixed at 12.25 per cent and that employees could be redeployed within the same state, provided bank managements are prepared to share the pension-load.

As far as Verma panel report and improving the health of banking sector is concerned, the unions do have some suggestions. According to the leaders, bank default should be made a criminal offense. The Reserve Bank of India should make it mandatory for banks to publish the list of borrowers who have defaulted on bank funds in excess of Rs 50 lakhs. Laws relating to recovery of loans and repossession of assets should be made sharper. And, finally, the Verma panel recommendation on Asset Reconstruction Fund (ARF) should be scrapped altogether as this is nothing but an escape route for affluent industrial defaulters, Sengupta said.