IDBI Bank employees are fuming over its categorisation as a private lender and are seeking alternatives to switch to any other nationalised bank.
“We also want a memorandum of understanding confirming that existing service conditions and welfare measures for officers will be protected till their retirement,’’ said AV Vithal Koteswara Rao, General-Secretary, All-India IDBI Bank Officers’ Association, speaking to the Hindu Business Line.
“Once the notion of a private bank arises, not only employees but also the general public, will lose as public sector banks’ service is not profit-oriented,’’ he said. The association has also presented a list of demands to the bank management with plans of a nationwide hunger strike on March 30.
In April 2005, IDBI Bank was categorised under a new sub-group named ‘other public sector banks’ by the RBI. This was “in view of the assurance to Parliament given on December 8, 2004, by the Finance Minister during the discussion on the Repeal Bill, 2003 that the government holding in IDBI Ltd would always be above 51 per cent,” according to a letter written by the RBI to the IDBI chairman.
However, the association claims that the current development runs contrary to the government's assurance. It also demanded a bilateral transfer facility, lease rentals revision, an introduction of sabbatical leave and stringent measures to recover bad loans.
With 17,500 employees and almost 1900 branches across the country and a top rating for customer service for the last two years, the bank was categorised as a private sector bank for regulatory purposes by the RBI on Thursday. The central bank took the decision after LIC acquired 51 per cent of the total paid-up equity share capital of the bank.