Government denies five-day bank workweek agreement

Officials said the government denied agreeing to a five-day working week for banks on Friday, countering reports tied to a recent wage revision settlement; equity reaction pending.

Finance ministry denial

Officials said no formal commitment had been made to change bank working patterns, and that claims the settlement included a five-day week were incorrect. The statement was issued as employee unions called a nationwide strike over pay and conditions, officials said.

The denial reduces an immediate operational risk for branch networks if it is accepted by unions, since a shorter workweek would have forced banks to rework service schedules and staffing. If unions proceed with the planned strike, bank equities may come under pressure from concerns about branch closures and payment-friction; if the unions suspend action after the denial, listed lenders would likely see the risk premium ease.

Watch for a union response or an updated government statement within 24 hours. Market participants will use that signal to reassess the likelihood of service disruption and its near-term impact on bank shares.