AIBEA opposes recategorisation of IDBI Bank as a private bank

AIBEA opposes recategorisation of IDBI Bank as a private bank

Agency News

Hyderabad, Mar 20: All India Bank Employees Association (AIBEA) has expressed its strong opposition and protest against re-categorisation and re-classification of IDBI bank as a private bank.

''We demand reconsideration of the decision by RBI and reverting the Bank as ‘Other Public Sector Bank as hitherto'' AIBEA General Secretary Ch Venkatachalam said in a letter to RBI Governor Shaktikanta Das on Tuesday. The RBI had issued a notification re-categorising IDBI Bank as a Private Bank w.e.f. January 21, 2019 that upon LIC acquiring 51% of the equity capital of the Bank.

From AIBEA, Mr Venkatachalam said we would like to convey our strong opposition and protest against this re-categorisation and reclassification of the Bank as a private Bank.  IDBI Bank have been created to be Banks under public sector.  Due to huge bad loans to the corporates, the Bank has been  facing problem of recovery and consequently its financial performance, he said, adding Private sector is  solely responsible for the huge bad loans of IDBI Bank and it is strange and ironical that RBI is making the Bank as private Bank instead of taking tough action on the private  corporates who owe huge sums of loans to the Bank.

By re-categorising the Bank as a private bank, it is obvious that the RBI wants to shield the skeletons of the Bank from public glare under RTI and CVC. The AIBEA General Secretary said even though the Government’s stake has come below 51%, LIC, which is the main share-holder is also a 100% Government’s corporation and hence, the re-categorisation is unwarranted and motivated against public interest. (UNI)