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Showing posts with label privatise IDBI Bank. Show all posts
Showing posts with label privatise IDBI Bank. Show all posts

Tuesday, 26 April 2016

07:20

Several IDBI Bank staff transferred, suspended

Several IDBI Bank staff transferred, suspended

NEW DELHI: Several employees of IDBI Bank, who went on a strike at the end of the last financial year to protest against the government's move to lower its stake below 51%, have been transferred, while 11 have been suspended after the management took a grim view of their conduct.
Bank employees said nearly 200 of their colleagues have been transferred across the country with some of the leaders in cities such as Guwahati and Delhi being on the list. A senior bank executive, however, said around 50 employees have been transferred across zones, a decision that was taken by the central office, adding that he did not have the numbers for intra-zone transfers. He also described some of the transfers as routine.
"As a bank we have been mild. The number of suspensions is small considering that the action of some people affected the bank at a very critical time, which is end of the financial year," said the executive.
IDBI Bank employees brought work to a standstill during the last week of March to protest against the government's move to reduce its stake and offload it to international and institutional investors.
Sources said the management has taken exception to some of the posts that were circulated via social media, including a call to withdraw salaries from bank accounts so that IDBI Bank's deposits were lower at the end of the year. Similarly, some of the employees who accused part of the top management of being corrupt, have been suspended. "There were derogatory comments that were circulated through social media and WhatsApp, which cannot be be condoned," said a source in the government.
Employees were quite vocal in their protests at town hall meetings across the country that were attended by IDBI Bank MD & CEO K P Kharat, deputy MD B K Batra and other senior executives.
However, the government has not altered its plan and is holding firm despite other unions joining the protest. The All India Bank Employees' Association, for instance, has included dropping IDBI Bank privatisation plans as one of the demands, while calling for a strike next month.

Source:TOI 
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Saturday, 2 April 2016

20:44

IDBI Bank claims strike failed, unions say near success

IDBI Bank claims strike failed, unions say near success

Even as unions of state-run IDBI Bank on Monday claimed a successful one-day strike, the management said the bank “functioned normally”.

The strike, which was called by the United Platform of IDBI Bank Unions (UPIBU), which constitutes officers from the All India IDBI Officers’ Association (AIIDBIOA) and IDBI Employees’ Association (IDBIEA), is one of the many hurdles to the government’s privatization drive and attempts to consolidate other public sector bank (PSBs).

The bank claimed that none of its services were disrupted following the nation-wide strike, except in Karnataka, where the high court has asked the unions not to go on strike.
“All banking services like front-office services, back-office operations including cheque clearing, remittances, RTGS/NEFT, transaction banking services, treasury operations have been functioning normally,” IDBI Bank said in a statement.
But the unions gave a different picture. “The strike was a grand success. All the offices and branches of the bank remained closed today,” UFIOE, which called for a one-day strike, said in a statement.

Employees and officers affiliated to UPIBU have called for a four-day strike. “Today, almost 85% of the officers and 100% of employees were on strike. Our strike will continue for three more days,” a member of UPIBU said.
“Our agitation programme, which includes the four-day strike, is against the contemplated move of the government to reduce its stake in IDBI Bank below 50%,” said UPIBU in a statement, demanding that suspension orders issued against certain officers regarding their agitation last week be revoked.

The protest follows two failed reconciliatory meetings with the labour commissioner on 18 March and 21 March between IDBI Bank employees and the management.
Separately, the All India Bank Officers’ Association (AIBOA) had also issued a one-day strike call on Monday to lend support to IDBI Bank union.
Finance minister Arun Jaitley, in his budget speech last month, said that the government will consider ceding control of IDBI Bank, slashing its stake to less than 50% from 80.2% now.

The privatization drive is part of the larger plan to infuse Rs.19,000-20,000 crore of equity into the bank before 31 March 2019 under the Basel-III norms.
Other options include sale of non-core assets and raising fresh money through a private placement to institutional placement which IDBI Bank announced in December 2015.
On 21 March, Mint reported that the International Finance Corp., a private investment arm of the World Bank, was one of the investors interested in buying a stake in IDBI Bank and had finished inspection of the bank’s balance sheet and other financial information.
The UK’s CDC Group Plc. and US private equity firm TPG Capital were also in talks with the government to buy a stake, said the report. Both IFC and CDC Group officials were in Mumbai two weeks ago to meet top IDBI Bank executives.

Names of other interested parties such as the Government of Singapore Investment Corp. (GIC), a sovereign wealth fund, and private equity firm Temasek Holdings Pvt. Ltd have also emerged.
On 1 March, the bank announced a three-year turnaround plan in which the lender aims to double its total business to over Rs.10 trillion by March 2019 from the current level of about Rs.5 trillion.
The government’s proposal to trim its stake in IDBI Bank to under 50% will be a test case for whether the government can pursue the politically difficult plan to privatize state-run lenders. According to a Moody’s report, Indian banks will need an estimated Rs.1.45 trillion of equity fund infusion by March 2019 to recapitalize weak banks.
At 9:20am, IDBI Bank shares were quoting at Rs.70.50 apiece on the BSE. The stock was down 0.42% from Wednesday’s close. Indian markets were closed on Thursday and Friday on public holidays.
At current rates, the value of the government’s stake is Rs.10,737 crore. The stock has touched a high of Rs.95.70 and a low of Rs.47.40 in the past 52 weeks.
The government infusion into state-owned banks is part of the Basel-III norms to improve the banking sector’s ability to deal with financial and economic stress. The norms require banks to maintain a minimum capital adequacy of 9% and a Tier-I capital ratio of 7%. Indian banks need an estimated Rs.3.7 trillion by the year ended 31 March 2019 to meet the requirements.

 Source:BankingUpdates
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Friday, 25 March 2016

22:01

IDBI BANK STRIKE:UNIONS AWAIT FOR CLARITY

IDBI BANK STRIKE:UNIONS AWAIT FOR CLARITY

Unions await clarity on strike call in IDBI Bank

Two courts have issued orders restraining the unions from going on a four-day strike starting March 28

The unions which were planning a day's strike in IDBI Bank in protest against the Centre's plan to reduce its shareholding in the lender, are waiting for clarity on whether orders issued by two courts in two states would go against their strike.

According to AIBEA's general secretary C H Venkatachalam, a court in Karnataka and another in Telangana have issued orders restraining the unions from conducting strikes from March 28 to March 31. The order was issued based on a petition filed by IDBI Bank, and was related to a four-day strike call by a section of bank officers.

Both AIBEA and All India Bank Officer's Association (AIBOA) had given a one-day strike call on March 28. However, a section of officers went ahead and announced a four-day strike from March 28 to 31. This, according to sources, could create difficulties, considering that the bank would be non-functional for nine days at a stretch starting Friday, March 25 , and that too just before the start of the new financial year.

"There is also a confusion prevailing in terms of the strike. It is only in IDBI Bank that the strike is going to happen and not in other banks," said Venkatachalam.

Various unions were mentioned by IDBI Bank in its petition and it has to be clarified whether the order is binding on all unions and whether or not the unions can go ahead with the one-day strike announced, he added.

The one-day strike has been announced by the employees' union against the central government's proposed move to reduce the equity stake in IDBI Bank to less than 50 per cent.

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Friday, 11 March 2016

20:22

IDBI Bank staff unions serve notice for 4-day strike

IDBI Bank staff unions serve notice for 4-day strike

THIRUVANANTHAPURAM, MARCH 11:  

The United Platform of IDBI Bank unions have served a notice for strike for four days from March 28 to March 31.

Accounting for the intervening holidays on either side, the recess will extend for eight days from March 25 to April 1, a representative of the unions said.

The strike notice was served on the Executive Director, Human Resources Department, of IDBI Bank, on Thursday, and has been signed by AV Vithal Koteswara Rao, convenor of the United Platform.

It said that the unions want written assurance that the shareholding of Government of India in IDBI Bank will remain at not less than 51 per cent at all times as assured earlier on the floor of Parliament.

It also demanded that the wage settlement pending since November 2012 be implemented immediately.

The names of the unions participating in the strike have been given as the All India IDBI Officers Association and IDBI Employees Association, Eastern Zone.

Meanwhile, employees are preparing to join the 'Twitter Maha Login' campaign for two days from tomorrow against the move to dilute Centre's stake in the bank.

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Monday, 29 February 2016

20:04

Budget 2016: Govt moves towards privatisation of IDBI Bank

Budget 2016: Govt moves towards privatisation of IDBI Bank

Union Finance Minister Arun Jaitley said in his Budget speech that the government has started the process of transformation of IDBI Bank and will look at bringing down government's stake in the bank below 51%.

Following an intent in the Budget, the IDBI Bank share shot up by 8% to 60 per share on Bombay Stock Exchange.

Currently, government's stake in the bank is more than 80%.

This is the first official announcement on such a move, even as discussion were on to dilute stake in the bank. IDBI Bank could be test case for the government before it moves to reduce stake in other banks as capital infusion is becoming challenging for the government considering its tight fiscal stance. 

On recapitalisation, Jaitley said government will infuse Rs 25,000 crore in public sector banks, while the government stands to infuse more if need be. The figure is part of the planned recapitalisation that the government announced last year, under its Indradhanush programme. 

Under the plan, the government will infuse Rs 70,000 crore in phases and has already infused Rs 19,950 crore to 13 public sector banks. Hence, there is nothing much new in the racapitalisation front except the government assurance that it stands "solidly behind banks."

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Friday, 27 November 2015

08:28

IDBI Bank strike tomorrow to oppose privatisation plans

IDBI Bank strike tomorrow to oppose privatisation plans

A section of employees of public sector lender IDBI Bank will strike work tomorrow to oppose the government's plan to privatise the troubled lender on the lines of Axis Bank.
The employees are protesting under the banner of United Forum of IDBI Officers and Employees, which is supported by All India Bank Officers' Association.

"The government, to achieve its disinvestment target of Rs 69,500 crore, is in the process of selling the family silver to private high networth individuals," a press release issued by the union said.

At present, the government owns 76.5 per cent in the infra-lender-turned commercial bank which is grappling with high bad loans and other legacy issues.

Earlier, Finance Minister Arun Jaitley and Minister of State for Finance Jayant Sinha had spoken about the government's plan to privatise the lender.

"We will consider transforming IDBI Bank in a manner similar to the way Axis Bank was done," Sinha had told reporters last month.

Source:BankingUpdates.
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Thursday, 19 November 2015

08:39

History of IDBI Bank & Circular

UNITED FORUM OF IDBI OFFICERS 
AND EMPLOYEES
C/o IDBI Bank Ltd., IDBI Tower, Cuffe Parade, Mumbai-400 005
October 26, 2015
Dear Comrades,

C I R C U L A R

United Forum, vide its Circular dated 6.10.2015 had declared the “Programme of organizational action” in protest against the contemplated move of the Government of India to Privatise IDBI Bank Ltd by diluting its share-holding to below 51%. We congratulate you for participating the programme with commitment and full vigour. Unfortunately, press continues to report about Government’s intentions to privatize IDBI Bank Ltd. It has, therefor, now been decided to intensify our programme. The dates for implementation of the “Day-long Dharna Programme” and “One Day Nation-wide Strike Action” are as detailed below :

Programme: Date of implementation:
18.11.2015 (Wednesday)
from 10.00 AM onwards
“Day-long Dharna” by members of State Committee of AIIDBIOA and Unit Committee of AIIDBEA before Corporate Office/Zonal Offices
ONE DAY NATION-WIDE STRIKE ACTION :
27.11.2015 (Friday)

General members may also invited to participate in the “Day-long Dharna” Programme voluntarily. Notice for Strike action will be issued by the United Forum in due course. Officers and Workmen staff are called upon to make the above programmes of action a thunderous success by their active and wholehearted participation. Preparatory meetings are to be convened by State Units of United Forum to gear-up the members towards successful implementation of Nation-wide One-day Strike Action scheduled for 27.11.2015 in coordination with State/District level leaders of AIBEA and AIBOA. After implementation of the current phase of agitation, the United Forum will meet and deliberate on further course of action.

March onward with conviction
March onward with unity
United action Zindabad
Inquilab zindabad

With fighting greetings,

Yours comradely,
(R.S. ATHALYE)
Convenor 
M: 9869787050
Email: rajiv.athalye14@gmail.com

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08:33

IDBI Bank's privatisation experiment ill-timed: Moily


IDBI Bank's privatisation experiment ill-timed: Moily

Former Union minister Veerappa Moily has said NPAs and stressed loans are very high, and at no point of time after the nationalisation of banks has the situation come to such a pass

Pointing to the weak health of public sector banks, Veerappa Moily, chairman of the Parliamentary Standing Committee on Finance, has mounted a scathing attack on the National Democratic Alliance (NDA) government's haste to experiment with IDBI Bank's privatisation.

In conversation with Business Standard, Moily, a Congress leader and Lok Sabha member from Karnataka, said: "Non-performing assets (NPAs) and stressed loans are very high. At no point of time after the nationalisation of banks has the situation come to such a pass. It is the worst situation."

Moily said banks and the economy of the country were in vulnerable situation. "If an experiment like disinvestment in banks is done now, some of them (banks) may have to be closed. The patient may get to the operation table, but there is no guarantee that he would come back alive. So the government can't apply normal rule of surgery at this point of time."

He, however, clarified he is not against the idea of strategic disinvestment. "It (disinvestment) is for infusing reforms in the governance, expand the capital base and invite public to participate. But, if that process is used only for the purpose of finding finance for the government and dilute the public sector, perhaps a day will come when the public sector will suffer."

The bank had made a presentation before the Standing Committee in the first week of November in Mumbai.

Despite a healthy rise in net interest income, IDBI Bank's net profit for the second quarter ended September 2015 was flat at Rs 119.5 crore on higher provisions for stressed loans.

The gross NPA of the bank stood at 6.92 per cent (Rs 14,757 crore) in September 2015, up from 5.72 per cent (Rs 11,559 crore) in 2014. The portfolio of standard restructured loans was Rs 16,025 crore in September 2015. Its provisions for bad loans provision and contingencies rose to Rs 1,289 crore in the second quarter of FY16 from Rs 990 crore in the year-ago period. Its provision coverage was 68.13 per cent.

Asked about the move by the government on privatisation, IDBI Bank's managing director and chief executive Kishor Kharat maintained there was no communication on divesting its stake below 51 per cent nor has it sought the bank's views on the same.

IDBI Bank is registered under the Companies Act. The Articles of Association of IDBI Bank requires government to keep at least 51 per cent stake at all times. The government holds 76.5 per cent stake in the bank as of end-September 2015.

The standing committee has already gone into the question of non-performing loans and it will shortly come out with a report on it as well as on stressed loans. Most sectors are failing: the manufacturing sector is not picking up at all and the power sector is heavily indebted, Moily said.

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Wednesday, 28 October 2015

08:50

IDBI Bank employees to strike work on November 27

Employees of IDBI Bank have decided to go on a nationwide strike on November 27, to oppose the government’s move to dilute stake in the state-run bank.

The one-day strike has been called by the United Forum of IDBI Officers and Employees to protest “the contemplated move of the government of India to privatise IDBI Bank by diluting its shareholding to below 51%”. At the end of September quarter, the government held 76.50% stake in the Mumbai-based bank.

The lender has over 1,700 branches across the country. As on March 31, 2015, it had a total staff complement of 16,555. The United Forum of IDBI Officer and Employees have chalked out ways to protest and agitate the government’s move, after finance minister 
Arun Jaitley last month said the government was considering giving more operational freedom to state-run banks and that IDBI Bank was a possible test case to follow the “Axis Bank model”.

Minister of state for finance Jayant Sinha has also said work is on to reduce government’s stake in IDBI Bank .

 Source :The Financial Express.
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