Chennai, Jan 6 (IANS): Unions in the banking sector Tuesday decided to defer their Jan 7 national strike with the Indian Banks'Association (IBA) upping its hike offer by 1.5 percent to 12.5 percent, said a union leader.

Further talks are scheduled Wednesday, C.H.Venkatachalam, general secretary, All India Bank Employees Association (AIEBA) told IANS over phone from Mumbai.

"IBA has improved their offer to 12.5 percent. Talks will continue tomorrow (Wednesday) morning and the strike announced earlier on Jan 7 has been deferred," he said

Wage negotiations between United Forum of Bank Unions (UFBU) and the IBA were held in Mumbai Tuesday evening as per the decision taken at the conciliation meeting held in New Delhi Monday.

The UFBU had decided to go on strike Jan 7 which will be followed by four days of continuous strike Jan 21-24 and an indefinite strike from March 16 demanding early resolution of their wage hike talks.

The UFBU includes AIBEA, National Confederation of Bank Employees, Bank Employees Federation of India, Indian National Bank Employees Federation, Indian National Bank Officers Congress, National Organisation of Bank Workers, All India Bank Officers Association and National Organisation of Bank Officers.

The unions have demanded a wage hike of 23 percent whereas IBA has proposed an 11 percent hike.

Earlier, Venkatachalam told IANS that the unions would consider climbing down from their demand if the management comes up with a better offer and agrees to some of their other demands.