IDBI Bank Employees Oppose Privatisation; Rs 2000 Crore Deposits Of Customers At Risk Due To Privatisation?

Officers and employees’ unions of IDBI Bank are concerned with the Central Government and LIC’s decision to sell their stake to private players.

The Government will begin roadshows for investor outreach shortly.

Who Holds What

Presently GoI and LIC have 45.48% and 49.24% shareholding, respectively, in the bank. 

LIC is the bank’s promoter holding management control.

Unions and Associations, in a joint statement said about the proposed road shows that it will register a “strong protest against the proposed sale of IDBI Bank to private players.”

Assurance Betrayed?

The Unions noted that the Central Governments move is against the assurance given by the then Finance Minister in both the Houses of the Parliament in 2003 that GoI, at all times, would maintain no less than 51% shareholding in IDBI Bank.

“The Central Government being promoter with 45.48% shareholding the general public have reposed their continued faith in IDBI Bank because of which the deposits in IDBI Bank stood at Rs 2,22,578 crores as on December-end 2021.”

In the event that the bank gets sold to private players, it says that the common man’s hard earned money will be at great risk. 

Demands

Those sharing this sentiment are All India IDBI Officers’ Association, IDBI Officers’ Organisation, All India IDBI Employees Association, and IDBI Karmachari Sangh.

The Unions recalled the hardship faced by the depositors of the erstwhile Punjab & Maharashtra Co-operative Bank (PMC Bank) and Lakshmi Vilas Bank, and YES Bank in the recent past.

It said that it demands the re-classification of IDBI Bank as a Public Sector Bank with GoI (45.48% stake) and LIC (49.24%) as promoters, and GoI’s shareholding in IDBI Bank to be always “not less than 51%”.