The unions have been demanding a 20-percent wage hike, and rejected the offer of 17.5 percent increase made Wednesday by the Indian Banks' Association (IBA) that represents the bank managements.

The government had asked the unions to hold talks with the bank managements and the chief labour commissioner, but the parleys were inconclusive.

'The association is playing with us. When they agreed to 17.5 percent hike initially, they brought in another clause that the pension load should be borne equally,' said N.S. Virk, vice president the All India Bank Officers' Association.

'This is after they signed a memorandum of understanding agreeing,' he said.

'We are on strike. Future course of action will be decided by the forum,' said Virk, suggesting that more such agitations would follow if the government and the bank managements do not manage to pacify the unions.