IDBI Bank officers’ association to observe one day strike over being categorized as private lender

IDBI Bank

IDBI Bank on Tuesday said that its all-India Officers’ Association will go for a one day  hunger strike across India over the issue of categorization of IDBI Bank as private lender by Reserve Bank of India (RBI). 

“The Bank is in receipt of notice of one-day nationwide hunger strike on March 30, 2019 from All India IDBI Officers’ Association (AIIDBIOA) addressed to MD & CEO, IDBI Bank in support of their various demands,” lender said in a stock exchange filing.

The All-India Officers’ association has been opposing the categorization of IDBI as private lender by central bank after Life Insurance Corporation (LIC) became the majority stakeholder in bank.

The central  bank in a press release issued on 14/03/19 said, “IDBI Bank Limited has been categorized as a ‘Private Sector Bank’ for regulatory purposes by Reserve Bank of India with effect from January 21, 2019 consequent upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.”

Earlier, in 2005 RBI categorized IDBI Bank Limited as “other Public Sector Bank”. This categorization by RBI was “in view of the assurance to the 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%.”

In its third quarter report ending December 31, the bank reported a three fold rise in its losses with net loss mounting to 4,185 Crore. Also the income in third quarter decreased from 7,125.20 Crore to 6,190.94 Crore.

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