Strike will damage customer confidence: SBI chairman

[1]

State Bank of India on Saturday termed the strike called by its officers for November 8 and 9 as unfortunate and said that it would damage the customers' interest and confidence.

"It is unfortunate. The talks are still going on," SBI chairman Pratip Chaudhuri told reporters on the sidelines of three-day conference "Bancon 2011" organised by Indian Banks' Association and Indian Overseas Bank here.

Stating that the strike called by the All India State Bank Officer's Federation (AISBOF) would damage the interests of its customers, he said, "We expect and hope that the strike will be called off. We have not estimated our losses on account of the strike yet. More than loss of money, it will damage the confidence of our customers".

Services in the banks' nearly 13,500 branches across the country are likely to be affected as its officers have given a strike call on November 8 and 9. The bank has a customer base of over 13.60 crore

AISBOF served a notice for the two day country-wide strike in pursuance of certain demands. Asked about the deregulation of savings account interest rates by RBI, Chaudhuri said the bank would not look at changing the interest rates in the immediate term.

"We are not contemplating any change in the savings account interest rates,'' he said.

Citing the RBI's move, some private sector banks have already increased the interest rates on their savings bank accounts.

Asked about the Finance Ministry's ruling out SBI's proposed rights issue, Chaudhuri said, "It is not ruled out. We have different options."

"The government has put Rs 4,000 crore (for SBI). Whether it will be through rights issue or by preferential issue will be decided by the government."