The UFBU has also demanded revision of wage settlement with effect from November 1, 1997. IBA had offered to effect a 8 per cent wage hike to banks employees with a rider that the new wage settlement would take place with prospective effect.

In a statement issued on Wednesday, the UFBU said the operating profits of banks rose to Rs 10,200 crore in 1997-98 from Rs 3,135 crore in 1992-93. This was an indication of the upward rise in profitability of public sector banks.

The organisation criticised the IBA stand on classifying banks into three groups based on net profit, operating profit and losses for the purpose of revision."Determination of net profit is not in the hands of employees and officers as appropriation out of operating profit is determined by Government, Reserve Bank and bank managements," it said.

The forum dismissed reports of a huge surplus of officers and staff as a myth. "There has been no recruitment in the banking industry from 1985," it said. The IBA had also not taken heed of the suggestions to start two shifts in metros and train employees in marketing and recovery to take care of the "so-called surplus", it added.

It called for other unions in the financial sector to support the strike and said it was willing to review its stand on the condition the government and IBA made a "reasonable and satisfactory offer". The UFBU had observed a countrywide strike on January 12, 1999, earlier in protest against the IBA offer.