In August, the government announced its plan to merge 10 public sector lenders into four to create fewer and stronger global-sized banks.
The whole priority will now shift to mergers and bad loan recovery will become the casualty,” General Secretary of All India Bank Employees Association (AIBEA) C H Vekatachalam said.
In a joint circular to their members, the two unions said, 'IBA appealed to us not to go ahead with the strike but could not come out to resolve any of the demands raised by us.'
A meeting was organised in Vijayawada recently following the in-principle approvals from the respective boards of Indian Bank and Allahabad Bank.
'A team comprises two members each from the three banks from different functional areas,' a UBI official said.
This is a part of the all India bank strike which will be held to protest against the merger of 10 state-run banks.
AITUC pointed out that earlier two mergers have not resulted into any tangible gains as bad loans have not come down.
The strike call has been given by All India Bank Officer's Confederation against the mega-merger of 10 nationalised banks and expeditious wage revision, the introduction of the five-day week etc.
The unions, which met on Wednesday, will decide on the next course of action at their next meet on September 20.
Finance Minister Nirmala Sitharaman had on August 30 announced a mega-merger of pubic sector banks.
For PNB, the merger comes at a time when its balance sheet is under stress. The merged entity will restore its status as the country's second-largest public sector bank.
The Andhra Bank Employees Union staged a dharna here on Thursday in protest against the Centre’s decision to merge Andhra Bank with the Union Bank and Corporation Bank.
The measure related to the recruitment of a chief risk officer at market-linked compensation especially is likely to drive an improvement in the risk framework, said Ind-Ra.
Last week, the government unveiled a mega plan to merge 10 public sector banks into four with a view to creating fewer and stronger global-sized lenders.
Yechury batted for boosting domestic demand through public investments.