A LARGE number of bank employees staged demonstrations opposing the sale of IDBI Bank to private players on Monday afternoon at Samvidhan Chowk, Nagpur. The bank employees also protested against the disinvestment in Regional Rural Bank and 100 per cent FDI in insurance sector. On the occasion, Suresh Bobhate, General Secretary, EMBEA said that the Government had planned to sell majority of the equity holding of 95 per cent held by both the Government and LIC. After the proposed disinvestment, the Government will be left with 15.24 per cent and LIC with 18.76 per cent, i.e. both together will have a holding of 34%.

 

This means that 66 per cent of the capital of IDBI will go into the hands of private investor. S P Tiwari, President EMBEA elaborated that the Government was starving public sector banks of the required capital and human resources through disinvestment and proposed privatisation. Placing such a huge network of bank branches, infrastructure and assets in the hands of private enterprises may turn out to be an irrational move. “It is not clear whether privatisation brings efficiency or reduces associated risks as compared to public sector banks. Innumerable private banks have failed, thus challenging the notion that only private banks are efficient,” he pointed out.

 

The demonstration was led by Jaiwant Gurway, Chairman of EMBEA and Chendil Iyer, Secretary of EMBEA.While,Vilas Lanjewar of IDBI Bank raised slogans against privatisation of banks. Shyam Pimpalkar of IDBI Bank, requested everyone to be united in the fight against privatisation. The All India Strike against privatisation of IDBI Bank was called by United Forum of IDBI Bank Officers and Employees under the banner of All India Bank Employees Association (AIBEA) and All India Bank Officers Association (AIBOA).