Employees unions of state-run banks on Wednesday called off their three-day strike proposed from March 28 after an "understanding" with Indian Banks' Association on their demands relating to pension, outsourcing, compassionate appointments and recruitments.

The strike could have put customers to inconvenience, since banking services would have remained disrupted almost the entire next week, and for the government, as tax payments for 2006-07 have to be made by March 31.

Union leaders, however, insisted that they are only deferring the strike and not calling it off since the stir could be revived "any time" if the promises made to them are not met.

"We have decided to defer agitational programme including a three-day strike," All India Bank Employees' Association General Secretary C H Venkatachalam said after a meeting between union leaders and IBA.

The strike was called to demand a second option of pension, compassionate appointment and in protest against outsourcing of work and "ban" on recruitments.

As per the agreement between the two sides, unions will give their proposal on pension before April 30 to IBA, which will work out a mutually agreed solution before June 30, Venkatachalam said.

IBA asked unions to specifically pinpoint areas of outsourcing that they are opposed to. IBA chief executive officer H N Sinor said the union will come to IBA with proposals on pension and outsourcing so that further talks can proceed. The association, according to Venkatachalam, also assured the unions that "need-based" recruitments will be made in PSU banks.

IBA also told union leaders that their demand on compassionate appointments has been referred to the government, which is expected to give a positive response.

Earlier in the day, union leaders had adopted a tough posturing, saying that they remain firm on going ahead with the strike unless their demands are reasonably met.

"Our decision to strike work stands till our demands are reasonably met," CPI and prominent trade union leader Gurudas Dasgupta said after a meeting of union leaders with Finance Minister P Chidambaram and other ministry officials.

Financial Sector Secretary Vinod Rai, however, had expressed the hope that bank employees would not go on strike.
Had the union decided to go on a three-day strike from March 28, banking services would have been affected for almost the entire part of next week since March 27 is a holiday on account of 'Ram Navami'.

As such, the Income Tax Department has already asked tax-payers to pay their taxes by March 23 to avoid inconvenience on account of disruption in services due to the proposed bank strike.