Assocham predicts bank strike to affect transactions worth Rs 15,000 crore

Associated Chambers of Commerce and Industry of India (ASSOCHAM) has said that the day-long strike that public sector banks' employees have observed today, to protest the proposed merger of SBI associates with the parent and other issues, will most likely affect transactions worth Rs 12,000 crore to Rs 15,000 crore.

Around 10 lakh employees observed a strike today, hitting services at around 80,000 branches in the country.

The United Forum of Banks Unions (UFBU), which is the umbrella organisation of nine bank employees and officers unions and represents 8 lakh staffers, had declared the strike on 13 th July. The strike affected services like cheque clearances, cash deposit and withdrawal at branches and other facilities.

"Public sector banks (PSBs) are already less profitable and have relatively higher ratios of non-performing assets (NPAs) compared to private sector banks. As such a complete halt of banking transactions following UFBU's decision to go on strike might result in significant losses," Assocham Secretary General D S Rawat was reported saying.

Rawat stressed that banking sector reforms are the "need of the hour," and the functioning of the PSBs needs to be refurbished.

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