IDBI Bank staff seek option to shift to other PSBs
Saturday - March 16, 2019 5:00 pm , Category : BUSINESS
New Delhi, March 16 (IANS) The employees of IDBI Bank have opposed the bank's categorisation as a private lender and are seeking the option to switch to any other nationalised bank with protection of pay and service."The All India IDBI Officers' Association (AIIDBIOA) proposes to go on a one-day hunger strike on March 30 seeking options to be given to all officers as on date to switch over to any nationalised bank with protection to pay/salary and service," AIIDBIOA Secretary A.V. Vithal Koteswara Rao said in a letter addressed to Banking Secretary Rajeev Kumar, the Regional Labour Commissioner (Central) and the Chief Labour Commissioner (Central).Expressing concern over the recent re-categorisation of IDBI Bank as a private sector lender by the Reserve Bank of India (RBI), AIIDBIOA demanded a memorandum of understanding (MoU) to be signed between the government, the IDBI Bank and itself confirming that the existing service conditions and welfare measures for the officers as on date will be protected till the time of their retirement. In January, the Life Insurance Corporation (LIC) completed the process of picking up a controlling 51 per cent stake in IDBI Bank."IDBI Bank has been categorised as a 'private sector bank' for regulatory purposes by the Reserve Bank of India with effect from January 21, 2019 consequent upon LIC acquiring 51 per cent of the total paid-up equity share capital of the bank," the RBI said in a recent statement.The employees' association also demanded a bilateral transfer policy between the IDBI Bank and the AIIDBIOA to be signed keeping in mind the difficulties being faced by the officers in getting transfers. The association has also demanded that accountability should be fixed on all those concerned for the burgeoning non-performing assets (NPAs) and huge write-offs. The IDBI Bank has come under the prompt corrective action (PCA) framework of the RBI that restricts it from corporate lending, branch expansions, salary hikes and other regular activities. The bank's gross NPAs shot up to 29.67 per cent of gross advances as on December 31, 2018 against 24.72 per cent in the year-ago period. For the December quarter of the present fiscal, IDBI Bank reported widening of loss to Rs 4,185.48 crore as bad loans mounted.