IDBI Bank: Unions want Govt to stop privatisation

IDBI Bank officers and employees unions have voiced their concerns at the proposed move of the Central Government and the Life Insurance Corporation of India (LIC) to sell their stake to private players. The Government is likely to begin roadshows shortly to gauge investor interest.

Currently, GoI and LIC have 45.48 per cent and 49.24 per cent shareholding, respectively, in IDBI Bank, with the latter being the promoter of the Bank with management control.

Referring to reports of proposed road shows for IDBI Bank stake sale, the Unions and Associations, in a joint statement said, “We...register our strong protest against the proposed sale of IDBI Bank to private players.”

The Unions observed that the move of the Central Government is totally against the solemn assurance given by the then Finance Minister in both the Houses of the Parliament in 2003 that Government of India, at all times, would maintain not less than 51 per cent shareholding in IDBI Bank.

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

“In case of sale of IDBI Bank to private players, the hard-earned money of common man and the general public will be at great risk,” as per the statement jointly issued by All India IDBI Officers’ Association, IDBI Officers’ Organisation, All India IDBI Employees Association, and IDBI Karmachari Sangh.

In this regard, the Unions noted the hardship that depositors of the erstwhile Punjab & Maharashtra Co-operative Bank (PMC Bank) and Lakshmi Vilas Bank, and YES Bank had to face in the recent past.

“While we strongly oppose the proposed sale of IDBI Bank to private players, we demand re-classification of IDBI Bank as a Public Sector Bank with GoI (45.48 per cent stake) and LIC (49.24 per cent) as promoters, and GoI’s shareholding in IDBI Bank to be always “not less than 51 per cent,” the statement said.