—CIRCULAR No. 30/42/2026/75 12-10-2026
To Office Bearers, State Federations and
All India Bankwise Federations, All Unions
Dear Comrades,
Remembering the architect of Bipartite Settlement
13th October, 2026 – 117th Birthday of Com. Prabhat Kar
All of us are proudly looking forward to celebrate the 60th Anniversary of the achievement of Bipartism in the banking industry and the glorious role of AIBEA in achieving and preserving this system of collective bargaining.
At a time when managements were reluctant and hesitant to directly negotiate with the unions on our demands, at a time when in no other industry, this system of bilateral settlement was available in our country, it was the vision, foresight and prudence of Com. Prabhat Kar, the then General Secretary of AIBEA that trade union should venture to demand direct negotiation with the management instead of some third-party like a Tribunal or Pay Commission or Arbitrator or Wage Board to decide on the demands of the Union.
There was another challenge in the banking industry. It was not a case of single employer. There were multiple managements. Sastry Award covered 193 Banks. Desai Award covered 68 Banks. The profits of these Banks were different. The paying capacity of these Banks were different. Hence achieving one common wage revision Settlement was complicated. But Com. Prabhat Kar was convinced that we should demand direct negotiations and one common, uniform Settlement instead of the time-consuming and unsatisfactory Tribunals and Awards.
Many at that time were skeptical, cynical, doubtful and unconvinced. Many at that time predicted that bipartite settlement is not achievable. But AIBEA, under the farsighted leadership of Com Prabhat Kar dared to pursue the demand. As expected, there was total resistance to this demand from the Government, bank managements and Indian Banks’ Association.
But Com. Prabhat Kar along with Com H L Parvana built up a prolonged militant agitation and struggle in 1964. The famous Work-to-Rule movement was launched. Banks’ normal functioning and services were choked. Strikes paralised the Banking services. Ultimately, Government, IBA and bank managements yielded to the demand of AIBEA and agreed to have bipartite negotiations.
Bipartite discussions commenced on our demands and the 1st ever industry-level Bipartite Settlement was signed on the 19th October, 1966. 45 Banks (26 A Class Banks + 9 B Class Banks + 10 C Class Banks) were covered by this Settlement.
1st Bipartite Settlement achieved by AIBEA heralded a new era. AIBEA became the pioneer and path-finder. What was thought as impossible to achieve was achieved by AIBEA.
This achievement of bipartite system to settle the demands was possible because of the visionary approach of Com. Prabhat Kar. He perceived it with vision and pursued it with passion and conviction. Even today, this system of collective bargaining and bilateral settlement is regarded as the best system for the trade unions.
That is why Com. Prabhat Kar is regarded and respected as the architect of AIBEA.
Life sketch : Com Prabhat Kar joined Lloyds Bank as a Clerk in 1933. He came from a typical, ordinary middle class family. He was the only bread-winner and had his entire family to support who were dependent on him – mother, wife and children. But his mind was not on his career. The pathetic condition of his colleague employees became his concern. He was keen to do something for them. He decided to take the lead. Soon he was busy in organising them into a Trade Union and he formed Lloyds Bank Indian Staff Association and became its General Secretary.
He was in the company of few young and angry bank employees who realized that organising bank employees at national level was very important to put up any fight against the powerful bankers. These efforts began in 1941 but finally, it led to the formation of AIBEA on 20th April, 1946.
Around that time, he became the General Secretary of Bengal Provincial Bank Employees Association. In 1948, when Central Bank employees were on continuous strike against their management, he gave the call for solidarity strike by BPBEA. For this ‘crime’, the management prosecuted him and Com Prabhat Kar was victimized and dismissed by the Bank. His family was virtually in the streets. But Com Prabhat Kar did not feel cowed down. He was determined to strengthen the AIBEA and make it a strong union.
In 1953, he was elected as the General Secretary of AIBEA. He injected a lot of militancy into the organisation. The first All India Strike was organized by him in 1954 that forced the powerful Jawaharlal Nehru to climb down and resolve the demands of AIBEA.
Com. Prabhat Kar was very clear in his mind that AIBEA cannot and should not confine itself only to fight for the economic demands of bank employees alone. He believed that AIBEA has a to play its larger role in fighting for a vibrant banking sector to enable it to play its role in building up a strong economy and to benefit the common. He also wanted AIBEA to be a leading part of the general working class movement and not to be restricted only within the precincts of banks.
His clarity and vision enabled AIBEA to come out of the travails of tribunals and demand bilateralism which he achieved in 1966 by securing the 1st ever bipartite settlement.
There have been continuous attempts to reverse the clock and move away from the platform of bilateralism. We are happy that we could thwart all these machinations and stood the ground to preserve bipartism.
In the same way, he felt that Banks cannot play their due role if they are in private hands. So he gave the clarion call for nationalisation of Bank. By building up a massive campaign and struggle, he also achieved this demand when the major Banks were nationalised in 1969. Today it is before everyone in our country to see the impressive contributions of public sector Banks in the last more than five decades.
Today we see the efforts of the Government to hand over our Banks back to the hands of private vested interests. We see the efforts of the Government to permit Corporate houses to promote their own Banks. We see the loot of people’s money by the corporate defaulters. We see the increasing attacks on public sector banking and social banking. We need to continue our struggles to save public sector banks. That is why we have our slogan – people’s money for people’s welfare and not for private corporate loot.
Com. Prabhat Kar also believed that our demands can be achieved only if our organisation is made stronger. He was responsible to make AIEBA a very strong, broad-based, united, militant trade union organisation.
Com. Prabaht Kar emphasized that while bank employees have to be politically conscious, we should be careful not to be divided due to political affiliations. He always emphasized that AIBEA belongs to all members irrespective of their political commitments. Today we see fissiparous tendencies here and there where some inimical forces are trying to spread false political narratives which are harmful to the unity of the organisation.
We must shun these attempts and we all should work for strengthening our Unions under the banner of AIBEA. This the real way in which we can pay our tributes to Com Prabhat Kar.
The entire life of Com. Prabhat Kar was full of sacrifice, dedication, commitment and devoted to the betterment of bank employees in particular and people at large. No wonder, bank employees revere and respect him as the architect of our movement under the glittering banner of AIBEA.
His life and teachings will continue to inspire us in our onward journey to take our beloved AIBEA to greater heights.