Hyderabad: All India Bank Employees Association (AIBEA) has expressed its aggitation and staged a protest against re-categorisation and re-classication of IDBI bank as a private bank.
On Tuesday, AIBEA General Secretary C.H. Venkatachalam in his letter to RBI Governor Shaktikanta Das said, “We demand reconsideration of the decision by RBI and reverting the Bank as 'Other Public Sector Bank as hitherto.”
Earlier, the RBI issued a notification regarding re-categorising of IDBI Bank as a Private Bank with effect from January 21, 2019 with LIC acquiring 51% of the equity capital of the Bank. Mr Venkatachalam from AIBEA, said that they would like to convey strong opposition and protest against this re-categorisation and reclassification of IDBI as a private Bank.
IDBI Bank was created to be under public sector. Accumulating huge loans to corporates, and also increasing problem of recovery has led to consequent fall in its financial performance. Mr Venkatachalam was deeply disappointed by RBI move to recategorise IDBI as a Private Bank. According to Mr Venkatachalam, RBI move is ironic because instead of taking tough action on the private corporates who owe huge sums of loans to the Bank, RBI has decided to categorise it as a Private Bank.
The AIBEA General Secretary said that even though the Government's stake has come below 51%, the main share-holder LIC which is also a 100% Government corporation. Hence, the re-categorisation is unwarranted and motivated against public interest.