Branch-level operations at public sector banks were disrupted across several states on Friday as employees and officers joined a nationwide strike called by the United Forum of Bank Unions (UFBU). According to banking officials, the impact varied significantly across geographies, with operations largely normal in Mumbai while sharper disruptions were reported in Madhya Pradesh, Goa, Telangana, Kolkata and Uttar Pradesh, particularly in tier-3 and tier-4 cities. The UFBU said the strike brought banking operations in Maharashtra to a standstill, with more than one lakh employees and officers participating across the state. As per the union, clearing exchanges could not take place and over-the-counter transactions were virtually nil, with money market and foreign exchange operations also affected. A branch manager at Bank of Baroda noted that in places such as Kolkata and Uttar Pradesh, employees are being stopped from entering branches, which makes it difficult to carry out operations.
Despite branch disruptions, digital banking channels continued to function normally with internet and mobile banking, UPI and other online services remaining available. Banks had issued advisories to customers ahead of the strike, asking them to complete important banking transactions beforehand. State Bank of India in its advisory said that while it was making efforts to provide essential services, customers were requested to use ATMs, customer service points and internet banking for their banking requirements. ATMs have been filled with cash and digital channels are continuing to work, according to a branch manager at Union Bank of India, though withdrawals and deposits at the branch level are being affected majorly. The strike primarily affected PSBs, while private sector banks largely continued normal operations.
Banking operations across India are bracing for significant disruptions as multiple union strikes have been announced, with Union Bank of India warning that branch and office operations may be affected starting September 11. According to exchange filings, the United Forum of Bank Unions (UFBU) and All-India Bank Officers Association (AIBOA) will participate in the one-day strike on September 11, followed by a three-day strike from September 28-30, and an indefinite strike from October 26 onwards. The strikes have been called over several issues, including opposition to the government's revised performance-linked incentive (PLI) framework and implementation of a five-day banking week. As per Union Bank of India, the unions have served strike notices over various issues, with the bank taking necessary steps under existing guidelines to ensure smooth functioning. The Union Bank of India stated in its filing that it is unable to 'quantify the impact' of these strikes and that it would take 'all necessary steps' in accordance with existing guidelines to ensure the smooth functioning of its operations.
Axis Bank Ltd. is considering scattering its staff across multiple offices as India's third-largest private sector bank awaits a new headquarters in densely packed Mumbai, according to people with knowledge of the matter. The lender has failed to find a single office large enough for the roughly 3,000 people currently housed at the eight-storey Axis House building in Worli. Axis Bank is looking to vacate the current premises by April, which will then be demolished to make way for its new 32-storey tower expected to be ready in about five years. The proposed moves will impact teams across banking, investment banking, non-bank finance company and global capability center operations, as well as senior management, as reported by people familiar with the matter. The firm has multiple offices in Mumbai and aims to consolidate its workforce in the new headquarters once completed, with no final decisions taken yet.
The UFBU warned that further industrial action could follow if the issues remain unresolved, with the union stating 'If the issues remain unresolved, the industry is prepared for further industrial action, including an indefinite strike'. The September-end strike could have a greater operational impact as it coincides with the half-yearly closing period for banks, potentially disrupting branch-based transactions and other physical banking services during a critical period. The UFBU comprises seven unions — All India Bank Employees' Association (AIBEA), All India Bank Officers' Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers' Association (AIBOA), Bank Employees Federation of India (BEFI), Indian National Bank Officers' Congress (INBOC) and Indian National Bank Employees' Federation (INBEF). The unions are demanding the immediate implementation of a five-day banking week and settlement of residual issues, while opposing the performance-linked incentive (PLI) scheme introduced by the government.
