Finance Minister P Chidambaram on Sunday asked the United Forum of Bank Unions (UFBU) to desist from going on a proposed two-day strike on September 24th and 25th. He termed the proposed nation-wide strike by bank employees as 'unnecessary' and said that negotiations with the concerned parties had begun to meet the union's demand.

"The strike is not necessary. The government is ready to hold talks with bank unions," he said after inaugurating a Bank of India branch at Ulagampatty.

If the strike materializes, a section of the bank's employees may take part in the proposed strike on the said dates, in which case, the normal functioning of the branches of the bank may get affected.

Referring to the collapse of some financial institutions in the US, Mr Chidambaram said banks in India were insulated from the crisis and their financial position was quite strong. Above there were experienced and professional officials who managed the banking operations efficiently. Also the RBI's guidelines ensured a smooth functioning of the banks.

The bank unions had served the strike notice in protest against banking sector reforms such as privatization of the PSBs (Public Sector Banks), recommendations of Raghuram Rajan Committee and Anwarul Hoda Committee, merger of state-owned banks and amendment of the Banking Regulations Act [Deletion of Section 12(2)], which would enable full voting rights to foreign investors in the banking sector.

To this the finance minister said, a total of 12.51 lakh students had received Rs 20,000 crore as education loans as of March 31 this year and the agricultural loan target for the present fiscal was also Rupees Two Hundred and Eighty lakh crore.

The forum represents nine unions and associations of bank officers and employees. The government strongly believes that the proposed strike is uncalled for and unjustified. It will greatly inconvenience the public at large as an estimated number of 80 lakh customers visit the branches of public sector banks on an average working day. In addition, the clearing houses managed by the public sector banks may also be affected. Besides a strike in public sector banks will only drive more customers to deal with private sector banks, jeopardizing the interests of public sector banks. Therefore the ministry expects and hopes that the UFBU will call off the proposed strike on 24th and 25th September 2008.