The IBA has called a meeting of trade unions and officers' organisations on Friday to thrash out the differences. The objective is to avert the proposed January 12 industry strike. The association is, however, not prepared to revise its wage offer made last year.

"We are prepared to settle for a 20 per cent wage hike, lower than our original demand for 25 per cent. IBA must have an open mind and negotiate if it wants us to withdraw the strike call," a Mumbai-based officers' organisation leader said.

The unions have, however, rejected the IBA offer of a wage agreement with a prospective effect. "There is no question of accepting this... The association will have to make the new wage agreement effective from November 1997 when the last wage pact expired. We willnot compromise on this issue," the source said.

In November last year, the IBA had issued a take-it-or-leave-it note to bank unions offering 8 per cent wage hike for nine lakh and odd bank employees at the seventh bipartite settlement. Subsequently, it offered the same package to the officers' bodies. It had also made it clear that the wage settlement would be made effective prospectively and not from November 1997 when the last wage pact had expired.

Bank unions have rejected the offer and called for a one-day token strike on January 12 demanding higher wage hike. At the last five-year wage settlement-- which expired in November 1997-- bank employees and officers had got a 10.5 per cent hike.

"Keeping in view the present scenario and the banks' paying capacity IBA has made the final offer of wage revision equal to 8 per cent increase in establishment expenses as on March 31, 1997, to be implemented prospectively. It would not be possible to revise the offer, IBA secretary and CEO MN Dandekarsaid.

Some of the weak banks have hinted at opting out of the wage settlement as they cannot afford any wage revision. According to sources, at least three banks -- Uco, UBI and Indian Bank -- are planning to withdraw the mandate given to the IBA to broker the wage deal on their behalf.

The 8 per cent hike in employees' wage-- if implemented-- will impose an annual burden of Rs 530 crore on the banking industry. An identical wage increase for the bank officers will put an annual burden of Rs 400 crore on the industry taking the total burden to Rs 930 crore.