Privatisation Move of IDBI Bank Sparks Concerns Over Inclusivity and Reservation Policies 

The proposed privatisation of IDBI Bank has sparked debates over its implications for inclusivity and representation. Concerns are mounting over the fate of the reservation policy, which has ensured representation of backward sections, including SC/ST, OBC, and physically challenged individuals, since the bank’s inception as a public sector undertaking.  

Unique History of IDBI Bank and Concerns Over Inclusivity  

Established in 1964 as the Industrial Development Bank of India (IDBI), the institution was a wholly owned subsidiary of the Reserve Bank of India (RBI) to provide financial assistance to industrial enterprises. Later, the ownership was transferred to the Government of India. In 2004, IDBI transformed into a commercial bank, retaining its public sector identity. Presently, a majority stake in IDBI Bank is held by the Life Insurance Corporation of India (LIC) and the Government of India, with privatisation plans underway.  

Speaking to Kanal, Ratnakar Wankhede, All India Vice President of the SC/ST/OBC Employees’ Welfare Association and General Secretary of the All India IDBI Officers’ Association (AIIDBIOA), provided key details about the concerns and dilemma of the staff of IDBI bank. 

(A picture from a dharna organised by IDBI bank staff at Jantar Mandir, New Delhi.)

The reservation policy, integral to public sector undertakings like IDBI Bank, has ensured representation for backward sections in recruitment and promotions. However, stakeholders worry that privatisation could undermine this policy. “Privatisation might result in the discontinuation of reservation-based hiring, which has been instrumental in promoting inclusivity,” he told Kanal.  

Historical Assurances on Ownership

Wankhede also referred to commitments made in the past regarding IDBI Bank’s ownership. “In 2003, Jaswant Singh, the Finance Minister during the Atal Bihari Vajpayee government, assured Parliament that more than 51% of IDBI’s shares would remain in the public sector. However, the current government is bypassing Parliament while considering further divestment of IDBI Bank,” he said. 

Representation in the Workforce

Wankhede, further elaborated regarding the workforce composition in IDBI bank, stating “Among the total strength of approximately 20,000 permanent employees of IDBI Bank, around 50% belong to reserved categories. This includes 6,000–8,000 employees from SC/ST categories, 4,000 from OBC categories, and 485 physically challenged staff members’”

Concerns Over Reservation and Job Security

Wankhede further highlighted the concerns of the employees amidst the government’s privatisation plans. “Reflecting the apprehensions of the workforce, the government’s divestment move has prompted various dharnas and protest actions, including those at Jantar Mantar, New Delhi, during this period. Employees are worried about the potential undermining of the reservation policy and the future of staff from these categories. Many of them joined IDBI Bank after leaving public sector banks and private banks, and now they face uncertainty due to the privatisation plan,” he stated.

Impact on Current Employees  

Concerns also extend to the security of existing employees from reserved categories. Wankhede highlighted the fear that these employees could face termination or be coerced into voluntary retirement under the pretext of inefficiency. “Privatisation threatens to undo decades of progress in representation and inclusivity. Employees from backward sections fear losing their jobs or being sidelined,” he added.  

Upcoming Protests and Parliamentary Outreach

Discussing the future course of action, Wankhede said, “The joint forum of employee organisations and unions is planning another dharna during this budget session of Parliament. The date will be announced soon. Additionally, the forum has already met 25 Members of Parliament from both ruling and opposition parties, seeking their support for the cause of the employees.”

As the privatisation process progresses, stakeholders and employees continue to raise concerns over its far-reaching implications, particularly on inclusivity and representation. The need for clarity on the future of reservation policies and job security for employees from backward sections remains a significant point of contention.