In a letter to the RBI on Wednesday, AIBEA’s General Secretary C.H. Venkatachalam conveyed the union’s opposition to RBI’s decision.
“IDBI and IDBI Bank have been created to be Banks under public sector. Due to huge bad loans to the corporates, the Bank has been facing problem of recovery and consequently its financial performance,” Venkatachalam said.
According to him, it is ironical that RBI instead of taking action against the private sector corporate borrowers it seeks to protect the bank from Right to Information Act (RTI), Central Vigilance Commission (CVC) and others by recategorising IDBI bank.
“Even though Government’s stake has come below 51 per cent, LIC, which is the main share-holder is also a 100 per cent Government’s corporation and hence, the re-categorisation is unwarranted and motivated against public interest,” the letter notes.
The RBI recently classified IDBI Bank as private sector bank.