Indian bank employees’ strike severely affected the country

In demand of better wage, pension and hiring “on compassionate ground” eight hundred thousand employees of Indian banks went on a two day strike beginning from August 6, 2009. However, the “new-generation private sector banks” like ICIC Bank, HDFC Bank and Axis Bank were open on that day.

The strike was called upon by United Forum of Bank Unions (UFBU), the head organization which represents four officers’ trade unions and five employee trade unions. UFBU is the representative of more than 95% of the bank employees in India. On the first day, the state run banks and old private banks were shut down as employees did not come to work. Bank employees also organized a big rally at the Azad Maidan in Mumbai. Members of Eastern Zone General Insurance Employees’ union staged a rally in front of the regional office of the Oriental Insurance company.

The UFBU demanded 20% rise in salary, allow Provident funds to another 270,000 employees who applied for it and the 70:30 sharing of the Rs.6000 crore deficit in the pension funds between banks and employees. The Indian Banks’ Association (IBA) offered 17.5% salary hike.

This strike affected the business of the country. In Mumbai, on Thursday, twelve percent of 72000 cheques were submitted for clearance. Normally, 114 banks do clear these cheques but 36 banks were shut down for the strike.

Related articles:

Times of India

The Hindu Business Line

State Bank of India is offering Ezee Car Loan Scheme at an attractive rate

On June 27, 2009, State Bank of India (SBI) further slashed its interest rate on its Ezee Car Loan scheme to attract more credits. Till date, private banks such as the HDFC Bank, ICIC Bank were very popular for car loans but SBI is now is curving its niche in this segment.

Under the new Ezee Car Loan scheme of SBI, car buyers would pay 8% interest in the first year and then 10% interest in the second and third year. The scheme will continue till September 30, 2009. The Telegraph reports:

The EMI on Rs 1 lakh loan under the new scheme will be as low as Rs 1,559 in the first year and Rs 1,647 in the second and third year.

The interest rate will be reset from the fourth year at the card rate contracted as on the date of sanction, depending on the tenure of the loan.

The card rates are 25-75 basis points below the bank’s prime lending rate (PLR). The bank recently brought down its PLR to 11.75 per cent.

Earlier in February 2009, the interest rate for the Ezee car loan was 10%. Due to positive response from the customers, SBI decided to continue the scheme at an attractive interest rate. Under the new scheme, customers would not have to pay any processing fee. Aside from buying cars, SBI is also providing balance transfer facility which would allow customers, who took loans from other banks, to transfer their loans to SBI at lower rates.

Related articles:

The Telegraph

The Hindu Business Line