IDBI Bank Employees to Strike Against Privatization on November 2-3
Over 10,000 IDBI Bank employees plan a two-day strike against privatization, demanding government withdrawal of the proposal.
Mumbai, November 1 (Daily Kiran) : Employees of IDBI Bank are gearing up for a significant protest against the proposed privatization of the institution. More than 10,000 staff members will participate in a nationwide strike on November 2 and 3, as called by the United Forum of IDBI Officers and Employees, representing the bank’s workforce.
The employee organization has urged the central government and bank management to retract the privatization process. They argue that the revival of IDBI Bank was achieved not through private investment but through the collective efforts of the government, the Life Insurance Corporation of India (LIC), and the employees themselves.
In their statement, the union emphasized that during financial crises, employees maintained customer trust, ensured smooth banking operations, and played a crucial role in restoring the institution to a stronger position. They also noted that both the government and LIC provided significant financial support for the bank’s restructuring.
IDBI Bank faced severe losses due to the identification of a large number of non-performing assets (NPAs) during the Reserve Bank of India’s asset quality review process from 2016 to 2020. According to the employee organization, over ₹46,000 crore was provided in capital assistance by the government and LIC to rescue the bank during that period.
The union claims that the bank’s financial health has significantly improved in recent years. They report that IDBI Bank has recorded a cumulative net profit of over ₹30,100 crore in the last six years. Additionally, the gross NPA ratio has decreased from 31.78% in 2018 to just 2.30%.
Furthermore, the employee organization highlighted that the bank’s net NPA ratio stands at a mere 0.16%, with a capital adequacy ratio of 26.38% and a provision coverage ratio of 99.31%. These figures reflect the bank’s robust financial condition.
Despite these improvements, the government is moving forward with plans to transfer control of the bank to Canada’s Fairfax Group. The employee organization continues to oppose this proposal and has raised concerns about the valuation process and the lack of transparency in the sale.
