AIIDBIOA Urges Finance Minister to Merge IDBI Bank with a Public Sector Bank

The All India IDBI Officers’ Association (AIIDBIOA) has formally addressed Nirmala Sitharaman, India’s Finance Minister, urging her to consider merging the bank with another public-sector lender rather than proceed with the proposed sale to private or foreign investors. In their letter, the association emphasises that the interests of depositors, borrowers—especially in the MSME segment—and more than 20,000 employees must not be compromised.

Image- AIIDBIOA  letter to Finance Minister Nirmala Sitaraman

Details of the Letter
As per the letter to the Finance Minister, the bank officers’ body stated that the proposed sale of IDBI Bank by the Government of India and LIC of India to private or foreign entities would be against the interests of depositors, small and medium enterprises (SMEs), MSME borrowers, and over 20,000 employees of the bank. The AIIDBIOA has urged Finance Minister Nirmala Sitharaman to “stand by national interest” and consider the merger of IDBI Bank with any Public Sector Bank to protect the interests of depositors, small borrowers, and employees.

Previous Representations
This follows similar requests made earlier to the Managing Director and CEO of IDBI Bank and the Secretary, Department of Financial Services in the Finance Ministry, says Vithal Koteswara Rao AV, General Secretary, AIIDBIOA.

Concerns Raised in the Letter
In a letter to the Finance Minister, Rao said the sale proposed by the Centre and LIC of India to private or foreign entities is against the interests of depositors, MSME borrowers, and 20,000+ employees of the bank.The All India IDBI Officers’ Association (AIIDBIOA) staged  protests demonstrating their opposition to the proposed privatization of IDBI Bank and demanding better job security and service conditions.

The All India IDBI Officers’ Association has expressed its concerns regarding the proposed sale of IDBI Bank and reiterated its request for a merger with a public sector bank to protect the interests of depositors, borrowers, and employees.