IDBI RETAINED AS A PUBLIC SECTOR ENTITY – GOVERNMENT RETRACES ITS STEP

IDBI Bank

January 20, 2016

POWER OF THE UNION CONQUERS ALL
IDBI RETAINED AS A PUBLIC SECTOR ENTITY
GOVERNMENT RETRACES ITS STEP

IDBI, a developmental financial Institution, founded in the year 1964, as an extended arm of RBI in the initial stage and subsequently came under the total control of the Central Government.

In the year 2004, IDBI Bank Pvt. Ltd., employed contracted workforce, had a reverse merger with the DFI-IDBI, pushing the DFI to entangle with commercial Banking operations. During the regime of UPA I, the old generation private sector Bank having its headquarters at Satara, Western Maharastra – United Western Bank was merged with IDBI and substantial compensation was paid to the share holders. Thanks to the political compulsions of UPA I to avoid the liquidation of UWB in the year 2006.

The then Finance Minister of the Country, while folding up the discussions on the floor Parliament in the 2003, categorically informed that the Government holding in IDBI, will not be below 52%. As on date, IDBI is considered to be a laboratory to carry out the experiment the various options of the Governments of the past as well as the present. IDBI, is governed under the Company law and not under Nationalisation Act 1969/1980.

Last year, the present Finance Minister and also Minister of State for Finance through print as well as electronic media made Government’s intention clear to mobilise the resources by reducing the Government’s stake in IDBI and push IDBI to private hands. The oft repeated expressions were loud and clear. Having sensed the dangerous move of the present Government, the United Forum of IDBI officers and employees under the Covenorship of Com.R.S.Athalye, who is also the Joint Secretary of AIBOA and General Secretary of AIIDBIOA, in due consultation with workmen representatives, unleashed a series of programme, including a day’s strike on 27th November 2015 ie; the next day of the commencement of the winter session of Parliament. Apart from this, the hasty announcement of reform process in 15 sectors including Banking, after the drubbing in the lections, received at the hands of the People of Bihar in November 2015.

Hats off to the entire workforce of IDBI, the fine preparation of agitation in various States coupled with determination, made the strike on 27th November 2015, a historic one, led by AIBOA officers. IDBI working was brought to grinding halt. The general council meeting of AIIDBIOA was held at New Delhi on 12th December 2015 to review and take forward the further course of programmes.

While the second phase of agitational programmes were rolled out, the team of office bearers utilised the time gainfully to meet the Parliamentarians of all the political parties at Delhi. The team worked round the clock literally the whole week. Sincere and hard works pays. Shri Sultan Ahmed, M.P. raised the question in the floor of the Parliament. A categorical reply from the Government on the equity holding including IDBI speaks for itself.

A sincere and serious step taken by AIBOA backed by AIBEA workforce, made the Government to relent from the hasty move or Privatisation of IDBI for the present. The unsettled issue of ownership of IDBI has been settled. As on date, the Government stake is 80% from the earlier stake of 76.5%.

Red Salutes to IDBI officers and workmen for their steadfast approach in protecting the Public Sector character of the IDBI, in their Nation building exercise.

Yours comradely,
/S.NAGARAJAN/
GENERAL SECRETARY

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