AIBOA supports IDBI employees’ strike against disinvestment

IDBIAll India Bank Officers’ Association, the second largest organisation of bank officers, said it would support the upcoming strike by IDBI employees against disinvestment of IDBI Bank.

The government is reportedly planning to bring down its holding in the bank below 51% like it did in case of Axis Bank (formerly UTI Bank).

“The entire workforce in IDBI shall observe an All India strike on 27th November 2015. AIBOA extends total solidarity support to the struggling IDBI workforce,” the association said.

IDBI Bank, a Public Sector Bank, having Government equity of 76.5% absorbed the IDBI Bank Ltd., a new generation Bank in 2005 and also another old generation Private Sector United Western Bank in October 2006.

Originally the IDBI Bank was established in 1964 functioning under RBI and subsequently the ownership was transferred to Central Government in 1976.

“The Government at the centre in order to achieve the target of disinvestment of Rs. 69,500 crores, is in the process of selling the family silver,” the union alleged.

It claimed that on 08.12.2003, the former Finance Minister Jaswant Singh of NDA made a categorical assurance in the floor of the Parliament that the Government of India will hold 51% equity in the IDBI.

“There are communications from Ministry and RBI confirming the Government’s assurances about the equity in IDBI and classified IDBI as other Public Sector Bank,” it said.

Unlike in most countries, most of India’s banks are owned and controlled by the government due to the nationalization of banks carried out 40 years ago by Indira Gandhi.

Bank employees enjoy many perks and cannot be dismissed from service except under highly unusual circumstances.

However, in private sector banks like Axis Bank, they are given strict targets and salaries are tied to their performance.

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