IDBI Bank employees meet political parties to pitch against privatisation

Representatives of United Forum of IDBI Officers and Employees said they recently met Hon’ble Members of Parliament from various political parties  and submitted Memorandum urging upon them to intervene in the process of strategic disinvestment of IDBI Bank.

The bank has booked profits consistently for the last four Financial Years i.e., Rs.1,359 cr. 2020-21; Rs.2,439 cr. 2021-22; Rs.3,645 cr. 202223 and Rs.5,634 cr. 2023-24 and is likely to end up with Rs.7,000 cr. profit during the current Financial Year (2024-25). Gross NPA and Net NPA of IDBI have gone down historically low to 3.68% and 0.20% respectively and provision coverage ratio to 99.42%.  

“Thus, as per Unions view point, there is no reason why this profit-making entity should be sold to private entities more so to entities with foreign origin such as Emirates NBD from Dubai and Fairfax Financial Holdings Limited with foreign origin from Canada which as is learnt are main contenders in purchasing IDBI Bank,” said the union in a statemen to Biznewsweek.

This is absurd more particularly when the BJP lead NDA Government is in power which always stands for Swadeshi and self-reliance.  As is perceived by the Unions, bidders are no more interested in extending financial services but are interested in various properties owned by IDBI Bank including 50 Acres property in Hyderabad, Telangana, the union said. 

Since the Central Government is anxious to complete the process early, it seems that the Bidders are bargaining hard to obtain various concessions and relaxations from the Government of India as also Regulators.

Further, the Unions have drawn the attention of people’s representatives to the assurance given by the then Hon’ble Minister of Finance, Shri Jaswant Singh in 2003 that the Central Government will not disinvest its stake more than 51% thus to retain its ownership with the Central Government. 

What does the employees say?

As on date, in IDBI Bank, the Central Government owns 45.48% while the Central Government owned entity LIC owns 49.24% and Department of Investment and Public Asset Management (DIPAM) of Ministry of Finance is in the process of selling 30.48% of Central Government share and 30.24% of LIC’s share which it means 60.72% of IDBI Bank share will go into the private/foreign hands.

If it works out, Unions apprehend that the new entity will work only for accounting profits by compromising with the social profits.  As on date, IDBI Bank is catering to 2 crore depositors including 18.72 lakh Jan Dhan Account holders. 

In addition to this, IDBI Bank caters to social priorities and is earning significant profits along with social profits.  In the proposed sale process, common man such as Agriculture, small business, trade will become casualty. 

The Union also apprehends looking to the track record of potential bidders that they will exit from the ownership by disposing off the precious properties owned by the IDBI Bank by betraying with the Depositors of whose confidence has been gained by the employees by extending excellent services.

The United Forum is seeking an appointment with the Hon’ble Minister of Finance and Hon’ble Prime Minister to share their concerns with a request to stall the process of disinvestment of IDBI Bank in the interest of IDBI Bank and its three crore customers and 20,000 employees and also in the national interest.