"A settlement is finally in sight as both sides have shown intentions for a compromise settlement on the contentious issue of pension load sharing," IBA chief executive and secretary, MN Dandekar, said.

The most contentious issue is that of distribution of the load and charging of 26.5 per cent basic pay for the pension scheme (which is in lieu of the PF), as against the 10 per cent PF employees were contributing earlier.

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 and the additional cost of 16.5 per cent cannot be carved out of the wage packet. However, IBA maintained that this would mean that the additional cost crosses the 12.25 per cent wage hike agreed by the two parties earlier.

Union sources pointed out that the two parties are learnt to have agreed on an equal split of the additional 16.5 per cent cost. The IBA secretary declined to comment on this issue, adding that only some finer points of the entire package need to be ironed-out now.

Meanwhile, the bank unions have also announced plans to fight privatisation of the insurance and the banking sector and the Verma panel recommendations on voluntary retirement scheme, wage freeze and an across-the-board wage cut. The bank unions feel that the Verma panel has failed to take into account the role of employees in turning around these banks and has spared the management and blamed the unions for the poor performance.

"More than 20 unions/associations of banks and insurance industries representing more than 13 lakh employees and officers working in the banking and insurance sector have resolved to launch a morcha to the parliament on the opening day of the winter session. They have also called for a nationwide one-day strike during the winter session and another two or more days' strike in the budget session to press their demands," a press release issued in Mumbai on Thursday by the United Forum of Bank Unions and the insurance sector unions said.