The All India State Bank Officers' Federation has threatened to go on an indefinite strike, ahead of the year-end account closure, if the wage hike proposed by the Indian Banks' Association at its meeting the bank unions later this month failed to meet expectations.

The AISBOF wants bank employees' wage revision in parity with that of the Indian Administrative Services officers.

Last month, the IBA  had given an initial offer of 10 per cent wage hike, or a package which would cost the industry Rs 2,750 crore (Rs 27.5 billion), against Rs 2,220 crore (Rs 22.2 billion) in the eighth bipartite meeting between bank unions and IBA.

If IBA stuck to 10 per cent, the unions would reject the offer and take action by March-end.

"We will know what IBA has to say by mid-February and will not enter into any inferior agreement. We can go for an indefinite strike," said G D Nadaf, general secretary of AISBOF, at the 43rd annual general meeting of the State Bank of India [Get Quote] Officers' Association (Bengal Circle) in Kolkata on Sunday.

The wage settlement was already delayed by 13 months. With elections due this year, there could be additional pressure on the government for steeper revision of salaries.

The eighth industry-level wage settlement was valid from June 2002 to October 31, 2007.