The impact of the banking strike has started showing up in various trade related activities. Volumes in the stock market were average but trading in bond and currency markets were hit as state-run banks, the biggest players in the market, stayed away from active participation.
Traders said the RBI has rejected all the bids at the auctions in today’s auction as did not get full subscription . With a two-day strike called by the state owned banks and small private bank employees, for higher wages and pension, volumes on the money market stayed muted on Thursday and Friday. Volumes were low at Rs 3,350 crore on the central bank’s trading platform, hit by hardly any participation of state-run banks.
At least 900,000 employees of state have decided to go on a strike demanding higher wages and benefits. According to data from Clearing Corporation of India (CCIL), volumes traded have averaged to Rs 4,170 crore in the past two days, as against Rs 7,550 crore during the first three days of this week.
The Indian Banks? Association (IBA) has restored its earlier offer of wage hike offer for the bank employees to 17.5%. Also the IBA has made it clear that the New Pension Scheme (NPS) will be rolled out for all the new entrants in the banking sector. In a conciliatory meeting, which was held before the chief labour commissioner in New Delhi on Friday between IBA and the United Forum of Bank Unions (UFBU), IBA also stressed that second option of pension was subject to the condition that actuarial valuation will be done again after five years and the difference will be shared between the employer and the employees in the ratio of 70:30. The new IBA?s offer was recorded before the CLC.
However, the UFBU told the IBA that it will discuss the issue among its members. Afterwards the UFBU will approach IBA for clarification of certain doubts in the IBA?s new offer. However, the date of meeting between IBA and UFBU leaders was yet to be finalised, said an IBA official to FE on condition of anonymity. Talking to FE, CH Venkatachalam, convenor, UFBU, said that we have agreed to continue our bilateral talks with IBA to discuss the issues. He said that it was part of the conciliatory meeting meeting held before the CLC on Friday.
The Government of India had announced the sale 6.49%, maturing 2015 for a notified amount of Rs 4,000 crore, 6.90% stock maturing 2019 for an amount of Rs 6,000 crore and 7.40% bond maturing 2035 for an amount of Rs 2,000 crore through price based auctions on 7 August, 2009.
