Strike in Indian Overseas Bank – The Managing Director Should Avert It

Indian Overseas Bank was started in 1937 by M.Ct.M. Chidambaram Chettiar on 10 February 1937 and immediately had branches in Burma and Singapore. It was nationalized on 19th July 1969 with 13 more banks.

From a bank serving Nattukottai Chettiars, it has become a Bank for the Nation and has presence in Hongkong, Thailand, Singapore, Sri Lanka, and South Korea. As on 31 March 2025 it had a business (Deposits and Advances) of Rs. 5,61,958 crores. As on December 2025 the business has gone up to 6.44 lakh crores, showing a year-to-year growth of 18.7%. This would not have been possible without the total involvement of Officers and Staff. But the Management’s callous attitude and indifference towards the Officers’ Association and the award staff has led to agitations which have been deferred due to the intervention of the Chief Labour Commissioner.

UNION STRIKE NOTICE

All India Overseas Bank Employees Union had served strike notice for February 2 and 3 and held nationwide demonstrations before the strike. The strike demands were:

Demanding:

Expedite Compassionate Appointments.
Increase in Customer Service Associate recruitment. Indent to match branch requirements and branch expansions.
Immediate initiation of recruitment of Office Assistants.
Immediate initiation of recruitment of Armed Guards.
Immediate release of staff welfare benefits.
Implementation of Special Customer Service Associate settlement.
Immediate consideration of long pending Inter-Region Transfer Requests.
Posting of Customer Service Associates in Administrative Offices, RLPCs, etc., for undertaking work as defined in XIIth Bipartite Settlement.
Uniform and fair transfer policy for workmen through bilateral discussions.
Enabling overtime claims in HRMS 3 portal.
Re-designation of all Part Time Sweepers as Messengers as per the Memorandum of Settlement with the Union.
One-time transfer option for employees in reorganized regions.
Payment of bonus to temporary/outsourced employees.

The strike was also to oppose:

Skewed payment of PLI for the FY 2023-24.
Introduction of QR Code-Based Customer Feedback System for award staff.
Cadre-based discrimination.
Outsourcing of core bank functions.
Unjust deduction of salary for late coming.
Harassment of award staff.
Unilateral amendments to Transfer Policy.

The strike was deferred after the intervention of the Chief Labour Commissioner.

ASSOCIATION STRIKE NOTICE

The Strike Notice issued by Indian Overseas Bank Officers Association was to strike work on March 2.

DEMANDING:

Discontinuance of EOD blocking and calling on holidays.
Restricting reviews including VCs within office hours with maximum up to 6.00 PM.
Withdrawal of ‘Probation on Promotion’ clause from Promotion Policy 2025.
Right to disconnect after office hours, other than on extreme exigencies.
Immediate revival of the Central Consultative Committee (CCC) for regular bilateral discussions.
Posting elected representatives in Administrative Offices.
Posting Customer Service Associates, Office Assistants, and Armed Guards in all branches.
Expedite clearance of pending compassionate, medical, and spouse-joining transfers and linguistic area postings as per DFS guidelines.
Removal of anomalies in Transfer Policy, especially transfers on non-performance grounds.
Expedite compassionate appointments.

OPPOSING:

Introduction of QR Code-based customer feedback system.
Denial of genuine leaves of officers and marking LOP.
Usage of unprofessional language by reviewing authorities during reviews.
Unjust deductions from salary.
Unilateral amendments in Transfer/Promotion policies.

I have listed out the entire demands and oppositions by Unions and Association to show the readers the trivial nature of the issues which could be settled through regular bilateral negotiations. The Public Sector Banks have a robust quarterly negotiation system from 1969 onwards and the time-tested mechanisms have helped banks to ease Human Resource issues, get feedback from the ground, and develop business with total involvement of employees.

The Unions and Associations have shown highest maturity and loyalty. I have seen in the last 47 years the highest loyalty of Unions and Association and also seen a few senior executives whose only ambition is next promotion or placement.

10 YEARS AGO

In the case of IOB in the 2016 Annual Report, the then Managing Director Mr. R. Kotteswaran recorded under ‘Redressal of Grievance between Management and Unions’ that the IR environment for the Bank remained cordial and conducive for achieving organisation objectives. Even while the bank made loss, he issued 9 crore shares of Rs. 10 each to increase the capital of the bank and the employees subscribed to it.

NOW IN 2025

The Chairman of the Bank, Mr. Srinivasan Sridhar, begins the Annual Report 2024-25 with, “Dear Esteemed Shareholders, Valued Customers, and Dedicated Employees,” and while concluding writes, “I wish to place on record our appreciation for the hard work, dedication, and commitment of our entire team of IOBians, whose efforts are the bedrock of our success.”

In the same report, the present Managing Director, Mr. A.K. Srivastava, who is the Chief Executive, writes, “Dear Stakeholders,” and in conclusion writes, “I also thank all IOBians for their hard work, dedication, and commitment which has propelled the Bank strongly forward and helped in registering an all-round performance.”

If only this acknowledgement and appreciation were shown in practice, there would not have been any strike notice. In fact, earlier Annual Reports had appreciated the Unions for the cordial relationship under Industrial Relations, which is missing now.

IOBOA

IOBOA is a matured organisation affiliated to All India Bank Officers Confederation (AIBOC) which negotiates bank-level Bipartite settlements. It is presently headed by a General Secretary who is young, energetic, experienced, and who was part of the turnaround plan prepared by AIBOC and submitted to the then so-called 11 weak banks. AIBOC is part of United Forum of Bank Unions which has shown highest maturity and seen many struggles and successes.

One of the demands of IOBOA is: Immediate revival of the Central Consultative Committee (CCC) for regular bilateral discussions.

The Central Consultative Committee (CCC), a structured bilateral forum for addressing staff-related matters between the recognized Association and the Management of the Bank, has not convened since 2019, limiting scope for timely dialogue on emerging issues. This absence hampers amicable resolution and industrial harmony. Revival is demanded to facilitate regular, meaningful engagement between Management and Officers’ Association, fostering collaboration, mutual respect, and preventive resolution of concerns, in line with longstanding bilateral traditions.

AIOBEU STATED

AIOBEU in the strike notice states, “Striking work has never been our choice — but today, it has been thrust upon us. For long, we have exercised restraint, placed faith in dialogue, and sought justice through representation. But when genuine issues of the workforce are neglected and indifference replaces empathy, silence ceases to be an option.

The Management has ignored the vital contribution of the award staff community during the period when the Bank was under the Prompt Corrective Action (PCA) framework imposed by the Reserve Bank of India. The Union, as a signatory to the Tripartite Agreement with the Government of India for recapitalisation, accepted the burden of what was then termed collective responsibility. Every award staff member, though having neither sanctioning nor disbursing powers, stood firm in the interest of the institution. Yet, when the Bank regained stability and exited PCA, the very workforce that worked relentlessly in recovery, reassured customers amidst adverse media reports, and restored public confidence has been completely neglected and forgotten.”

AIBOC DURING PCA

In 2017 when RBI announced Prompt Corrective Action for 11 banks terming them weak and GOI asked for a tripartite agreement with DFS, Unions and Associations, AIBOC-affiliated associations not only signed the tripartite agreement but also prepared individual turnaround plans for all 11 banks and submitted them along with a Compact Disc showing different options and parameters. Mr. Neelamegan, Chief Manager, retired from IOB, was the key person involved and the present GS, AIBOC Mr. Rupam Roy, was Secretary, AIBOC, involved fully in the process. In 3-4 years all eleven banks started making profit and now they are robust.

The present MD, IOB, had 27 years’ experience in Allahabad Bank and became Executive Director of IOB in 2017 and MD in 2023. Normally Public Sector Banks are not given EDs and MDs for such a long time. In 9 years one can create his own fiefdom through promotions and postings in a small bank like IOB. This is not good for a bank. As per vigilance circulars one officer is not allowed to continue for more than 3 years in a branch.

Why is a person allowed for more than 9 years? The Government should think. Is it because he prints the photos of the Prime Minister, Home Minister, and Finance Minister in Annual Reports?

With one joint strike by both the organisations, the Finance Ministry will have a rethink.

BUSINESS GROWTH AND STAFF STRENGTH – THE CONTRADICTION

From total business of Rs. 3,97,241 crores in 2016, the business has gone up to Rs. 5,61,958 crores in 2025.

In 2016, the bank had 31,846 employees of which 16,000 Officers, 12,325 Clerks, and 3,521 Subordinate staff. The Gross NPA was 17.4% and Net NPA 11.89%. In 2025, the staff strength has come down to 20,966 with 12,494 Officers, 6,992 Associates, and 1,480 Office Assistants, which is alarming and dangerous for the bank. The Net NPA has been brought down to 0.37% with the contribution of all the employees.

The business has increased by 141% whereas the employee strength has come down by 34%, out of which the Officers’ strength has come down by 22% and award staff by 53%. This puts heavy pressure on every employee and the Officers bear the burden more due to accountability. We used to have 1:3 ratio of Officers and award staff but now award staff are much lesser than Officers. Is the grievance not genuine?

WHAT HAPPENS AT THE INDUSTRY LEVEL?

On a personal note I would like to add that as President of the All India State Bank Officers Federation (AISBOF), me and the General Secretary Com. Y. Sudarshan could meet the then Chairman Mrs. Arundhati Bhattacharya and later Mr. Rajneesh Kumar almost every month and with Mr. Prasanth Kumar as DMD & CDO (HR Head) we had excellent relations. We used to present the feedback of the customers as well as Officers and also present ways and means to develop the bank in the quarterly structured meetings. The practice continues even now and I am sure will continue forever. The same is the experience I have had with Indian Banks’ Association as well as MDs of other banks.

SAD EXPERIENCE

We did have bad days when another person was Chairman before that who wanted to weaken the Officers Federation. He had to appear in Madras High Court in a contempt petition filed by SBI Officers Association and say sorry.

IRRATIONAL BEHAVIOUR OF HR

The present General Manager of IOB has had the audacity to write in the reconciliation note after the Association had signed that he will close down the Association office if they go on strike. How illogical and demeaning of a negotiation? He has to say sorry or quit the post.

WORK LIFE BALANCE AND EMPLOYEE SATISFACTION

Work-life balance is dear to every employee today. IOB says, “The Bank remains committed to creating a safe, inclusive and empowering workforce that respects individual dignity and drives growth.” It has to walk the talk.

The survey done by Boston Consultancy Group (BCG), in which only 8,700 employees participated out of 20,966 employees, the satisfaction score was only 3.7 out of 5. If we take the number of employees who did not participate in the survey as dissatisfied, it comes to 69%. More than two-thirds of the workforce are not happy. However, due to their loyalty and hand-holding support of the Association and Unions who have promised work-life balance and five-day week, they are struggling to keep the bank at a high pedestal for which the MD keeps getting awards and rewards.

Everyone wishes that the next round of negotiations settle the issues amicably for which the initiative has to come from the Managing Director and not the Chief Labour Commissioner. The Union, Association, AIBOC, and UFBU are waiting for this to happen.

The ball is in the Managing Director’s court.

Thomas Franco is the former General Secretary of the All India Bank Officers’ Confederation and a Steering Committee Member at the Global Labour University.

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