Bank employees and officers' unions of public sector banks have deferred the proposed three-day strike after banks raised the wage hike offer to 15 per cent from 12.5 per cent earlier. The strike had been called by the constituents of United Forum of Bank Unions (UFBU), the umbrella body of the trade unions in the banking sector.

"In today's talks with Indian Banks' Association (IBA), apart from a 15 per cent increase in payslip cost, progress was made on some of our other demands as well. In view of this positive development, our agitation has been suspended and the three-day strike has been deferred", United Forum Bank Unions (UFBU) said.

Bank unions had threatened to go on a three-day strike from March 11-13 to protest over wage revision and other demands. Interestingly, the strike was timed in such a way that it would have a major impact on the banking operations for around a week in March. Apart from Holi holiday on March 10, the banking operations will remain closed on second Saturday (March 15) of the month.

The unions were demanding a 20 per cent hike on payslip components with adequate loading. In the latest round, IBA has improved their offer to 12.5 per cent, which was acceptable to the bank unions.

All India Bank Employees' Association (AIBEA) said in a statement that in the bipartite meeting, which was held between the unions and Indian Banks Association (IBA), discussions were held in respect of offer of increase in pay slip cost to 15 per cent, demand for five-day banking among others. It also added that IBA has agreed to discuss all other issues raised by the unions.

Earlier in January, the bank employee unions had observed a two-day strike from 31 January over wage revision and other demands.

By Chitranjan Kumar with PTI inputs

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