Bank employee body opposes IDBI Bank privatisation

All India Bank Employees Association representing the public and private sector bank staff, on Thursday criticised the government’s move to privatise IDBI Bank instead of recovering bad loans.

Noting that the AIBEA extended its support to IDBI Employees Association who observed a strike last year against the government’s decision, AIBEA General Secretary C H Venkatachalam said Finance Minister Arun Jaitley in his budget speech has made it clear that government would consider the option of reducing the capital of the bank to less than 50 per cent. Referring to bad loan in IDBI Bank which were transferred to Stressed Assets Stabilisation Fund a decade ago, he said, currently the bad loans in the bank have raised to more than Rs 18,000 crore. “Instead of taking stringent measures to recover these bad loans, it is regretful that government trying to privatise IDBI Bank.” he said.