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The United Forum of IDBI Officers and Employees has conveyed its serious concern to the Finance Minster over the government’s “move to sell a significant stake in the bank to LIC”. This is tantamount to reneging on the assurance given by the then NDA government in Parliament on December 8, 2003, Ratnakar Wankhade and Vithal Koteswara Rao, joint convenors of the United Forum, said in a letter to the Finance Minister.
Virtual privatisation
The Centre's move is only a façade for virtual privatisation of the bank and will adversely impact the interests of the officers and workmen staff.
The United Forum sought to register its “unequivocal opposition” and protest to any move that would dilute the Centre's stake, the 10-page letter said.
The sudden surge in NPAs due to revision in asset quality norms by the RBI is not exclusive just to IDBI Bank, but applicable to the entire industry, the letter said.
"The All India IDBI Officers and All India IDBI Employees Association, constituent units of the United Forum, have firmly affirmed their commitment to extend unstinted and unconditional support and cooperation to the bank in all its endeavours for the successful implementation of the 'turnaround plan’,” the letter added.
The bank has been consecutively posting healthy operating profit, but burgeoning provisioning to NPAs and write-offs are acting as a drag on the bottomline, making it imperative to retain it as a government-owned bank.
"We fervently urge the (Centre) to rescind its contemplated move to divest its equity...below 51 per cent in contravention of the solemn assurance given by the then NDA Government to Parliament on December 8 and 15,” the letter said.
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