Business | Banking
Strike hurts India bank operations and bourses
Indian banking operations and financial markets were heavily disrupted yesterday as one million workers went on strike to protest government pressure for mergers and reforms, to oppose outsourcing and to call for more staff.
- Reuters
- Published: 00:00 October 28, 2006
Mumbai: Indian banking operations and financial markets were heavily disrupted yesterday as one million workers went on strike to protest government pressure for mergers and reforms, to oppose outsourcing and to call for more staff.
Nine different unions, under the banner of the United Forum of Bank Unions, have joined the strike, and they threatened more strikes if their calls were not heeded. "When all the unions strike there is certainly an impact," said K.L. Gopalakrishna, executive director at state-run Corporation Bank.
"We are certain that good sense will prevail," said V. K. Gupta, senior vice president of the All India State Bank of India Staff Federation in New Delhi.
Many private sector banks and foreign banks were functioning normally as fewer of their staff are union members.
Traders said the absence of state-run banks had squeezed available cash in the money market and kept the overnight borrowing rate up near seven per cent.
"Volumes have thinned and the state-run banks are hardly in the market," said a currency trader at Bank of Nova Scotia.
PTI
Calling for action
Staff from state-run banks demonstrate in New Delhi yesterday. The unions threatened more strikes if their calls were not heeded.
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