Everybody knows present BJP Government trying to private everything in public sector and also they are trying to private IDBI bank to LIC buy investing a large amount, but also many factors are not favor to invest on bank which known to all.
“We are contradicting (the stake purchase) on the grounds that the sort of non-performing resources (NPAs) the bank has, LIC will utilize policyholders’ cash to tidy that up. All the more in this way, it will most likely be unable to utilize IDBI Bank’s land… While for the last 5-6 years, LIC has been attempting to raise the reward of the policyholders
Last Friday, the Insurance Regulatory and Development Authority of India (IRDAI) allowed Life Insurance Corporation of India (LIC) to expand stake in the feeble IDBI Bank from the current 10.8 percent to up to 51 percent.
The associations of both the protection and keeping money industry have kept in touch with the back service, and have asked other industry partners, including Indian Banks Association, for help.
“On July 14, we design a dharna (exhibit) at a few state capitals composed by the coordination advisory group of different associations of saving money and protection part… Also, in the following 30 days, we would see more strike and non-strike activities,” said Vithal Koteswara Rao, General Secretary, General Secretary at All India IDBI Officers’ Association.
As indicated by him, “This is an aberrant privatization. Until further notice, LIC will contribute the capital, later its stake will be sold to a private player and in the middle of, there is a risk that LIC may lose cash given the colossal terrible advances of the bank. There is each plausibility of not getting the profits.”
IDBI Bank’s aggregate non-performing resources (NPAs) crumbled to 27.95 percent in March of its aggregate advances when contrasted with 21.25 percent multi year sooner. It additionally posted a net loss of Rs 5,662.76 crore in Q4, to a great extent on the back of NPA arrangements, similar to a dominant part of the general population division banks.
Last May, IDBI Bank turned into the principal loan specialist to be put under the Reserve Bank of India’s updated provoke remedial activity (PCA) for its high non-performing resources and negative profit for resources. The last has been continually falling amid the last five fiscals. Further, the state-possessed bank has made misfortunes for three back to back monetary years.