The two-day strike of the public sector banks throughout the country has been called off following an agreement between the banks and unions to discuss their demands.

Chairman of the Indian Banks Association (IBA) M B N Rao said from Bangalore that the IBA and United Forum for Bank Unions have agreed to hold discussions on the union demands.

Rao said a formal agreement to hold discussion between the two sides would be signed on Monday.

He added that pending discussions, the unions agreed not to carry out their strike on Monday and Tuesday.

Rao said detailed schedule for talks would be drawn on March 3.

Union sources said that an MoU is likely to be signed between IBA and the United Forum of Bank Unions, which had called for the strike, later on Monday in Mumbai on various demands of employees, union sources said.

The unions are demanding early settlement of wage revision, second option for employees to go for pension scheme and compassionate appointment, among other things.

They are also protesting against merger between PSU banks.

Earlier, a conciliatory meeting called by Chief Labour Commissioner S K Mukopadhyay on Friday and another by the IBA on Saturday had failed.