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UFBU Calls Off Nationwide Bank Strike on 24th and 25th Mar 2025 After Assurances from Finance Ministry and IBA

I n a significant development on March 21, 2025, the United Forum of Bank Unions (UFBU) has decided to call off their two-day nationwide strike, which was originally planned for March 24 and 25. This decision was made after the UFBU received positive reassurances from both the Finance Ministry and the Indian Banks’ Association (IBA) regarding their key demands. The banking unions, under the umbrella body of UFBU, represent employees from nine major unions across the country, including AIBEA, AIBOC, NCBE, AIBOA, and BEFI. The unions had earlier called for the nationwide strike to protest against several ongoing issues that they believe impact the welfare and job security of bank employees. Key Issues Behind the Proposed Strike The strike was initially called by UFBU to address a range of pressing concerns, some of which have been lingering for years. The union's main demands included: Five-Day Workweek for Bank Employees:  One of the most anticipated demands was the implementation o...
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NPA in Banking

Non-Performing Assets (NPA) in banking refer to loans or advances that are in default or arrears, meaning the borrower has not paid back the principal or interest for a specified period. An asset is classified as non-performing if:

1.  Principal and Interest Payments: The payments are overdue for a specific period (usually 90 days or more).

2.Financial Health of Borrower: The borrower’s financial condition is such that there’s a risk of not recovering the full amount of the loan.

Types of NPAs:

1.Sub-Standard Assets: Loans that have remained non-performing for less than 12 months.

2.Doubtful Assets: Loans that have been non-performing for more than 12 months.

3.Loss Assets: Loans where loss has been identified but the amount has not yet been written off.

Impact of NPAs:

1. Financial Health: High NPAs affect a bank’s profitability and financial stability.

2.Capital Requirements: Banks need to set aside provisions for potential losses, affecting their capital base.

3. Regulatory Compliance: Banks must adhere to regulatory norms regarding NPAs, which can impact their operations.

Managing NPAs involves efforts such as loan restructuring, recovery through legal means, or selling off bad loans to asset reconstruction companies.

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