Protest bugle against IDBI-LIC stake dilution

Even as the decks are being cleared for the proposed IDBI-LIC stake buyout deal, about 400-500 bank employees opposing the move have called for a week-long strike starting next Monday.

Published: 12th July 2018 10:34 PM  |   Last Updated: 12th July 2018 10:34 PM   |  A+A-

Life Insurance Corporation of India

Image used for representational purpose only. (File photo | Reuters)

Express News Service

MUMBAI: Even as the decks are being cleared for the proposed IDBI-LIC stake buyout deal, about 400-500 bank employees opposing the move have called for a week-long strike starting next Monday.

When contacted, IDBI officials declined to comment, but sources said the bank management was in dialogue with the employees union, requesting them to call off the strike.

IDBI employees and bank employee unions are opposing the proposed dilution of government stake below 51 per cent, citing that such a move gives the government room to privatise. Two, the move could also trigger staff rationalisation by re-introducing voluntary retirement schemes, as was done in 2003, when IDBI transformed itself into a banking entity.

“If the deal gets through, the government will be going back on its word given in the Parliament in 2003 to not reduce the issued capital below 51 per cent. We will take up this issue when the Parliament session begins on July 2018,” said C H Venkatachalam, General Secretary, All India Bank Employees Association.

Earlier this month, All India IDBI Officers’ Association too has written to the Finance Ministry opposing the proposed IDBI-LIC stake acquisition, though the latter is a state-run entity and has explicitly said it will not seek management control.

“This solemn assurance (to not reduce government stake below 51 per cent) given on the floor of Parliament forms part of the records of the Parliamentary Committee on Assurances formed the very basis for the ultimate passage of the IDBI (Transfer of Undertaking and Repeal) Bill-2002,” the association observed.

Irrespective of the IDBI-LIC deal, rationalisation appears inevitable for the ailing bank, which has been put under RBI’s Prompt Corrective Action last year.

The bank has been consecutively posting healthy operating profits. Burgeoning provisioning to NPAs and write-offs are acting as a drag on the bottom line of the bank, he said.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.