The marathon conciliation meetings held at the behest of Mumbai's Regional Labour Commissioner failed to bring about an understanding between the IBA and UFBU. On Wednesday, the IBA management committee met to reaffirm an industry-wide wage settlement with a 10 per cent hike as the only wage cost they can afford. The unions also plan to go on an indefinite strike in March but private and foreign banks will be open. The UFBU had demanded an 18 per cent increase in wages but the IBA has agreed to a 10 per centhike.IBA secretary M N Dandekar said: "The management committee met to take stock of the situation and they have reaffirmed their ability to give only a 10 per cent hike. This is the maximum amount that the industry can dole out as wages as we will try to make the unions see reason in their demands. In the best interests of the nation the strike should be averted." An adamant UFBU stuck to its stand of an 18 per cent hike in the wages .

inclusive of retirement benefits and a 15 per cent rise exclusive of retiral benefits and were not willing to accept the 10 per cent hike of IBA.The bank unions had earlier written to the Finance Minister Yashwant Sinha requesting his urgent intervention to solve the vexatious wage issue as otherwise the banking services all over the country would be thrown out of gear following their indefinite strike call from March 17, besides the strike on February 25 and 26. The UFBU constitutes nine bank unions.The IBA Chairman, A T Paneerselvam had earlier said that it is impossiblefor the bank managements to give anything higher than a 10 per cent rise. If they go ahead with the strike the managements will go on the offensive. If the managements give anything higher than a 10 per cent hike, at least 10 banks will immediately go into the red. We cannot close down banks to dole out wages.

For every percentage of wage hike the banks would have to dole out Rs 100 crores, IBA officials said.