NEW DELHI:
Congress leader Rahul Gandhi has expressed solidarity with IDBI Bank employees opposing the proposed disinvestment of the public sector lender, asserting that public banks are institutions built with people’s money and should not be treated as assets for sale.
In an open letter to the bank’s employees, the Leader of Opposition in the Lok Sabha questioned the government’s decision to sell IDBI Bank to Canada’s Fairfax Financial Holdings. Recalling his meeting with a group of employees in Parliament House in March last year, Gandhi said they had asked why a bank they had helped turn profitable was being sold.
He pointed out that IDBI Bank, which was making losses seven years ago, had earned a profit of over Rs 9,000 crore last year. Crediting employees for the turnaround, he said the government and the Life Insurance Corporation (LIC), which together own 95 per cent of the bank, would be left with only 34 per cent after the proposed transaction.
Gandhi also recalled the government’s assurance to Parliament in 2003 that it would retain at least 50 per cent ownership in IDBI. He warned that privatisation could affect reservation benefits for SC, ST and OBC candidates as well as employees’ service conditions. He pledged support for the employees’ legitimate demands.
The government approved the sale of a 60.72 per cent stake in IDBI Bank to Fairfax for around Rs 53,000 crore on October 14. The proposed transaction involves the government’s 30.48 per cent stake and LIC’s 30.24 per cent holding. The deal is subject to regulatory clearances, including approval from the Reserve Bank of India.