Top-Heavy Idbi Holds Back Promotions

The Industrial Development Bank of India (IDBI) has put on hold all promotions, pending its conversion to a universal bank.

The institution is at present in talks with a host of banks, including its subsidiary IDBI Bank, for a merger which would result in a universal bank.

"This (no promotions) decision has been taken as at present IDBI is top-heavy. Further promotions at this stage will only aggravate the situation. Post-merger it may not be possible to accommodate so many officers in senior positions as some posts will be filled by the employees of the bank," said a senior IDBI official.

This affects the fate of around 150 employees as there are around as many promotions across the board every year.

Currently, IDBI has around 3,000 employees -- 1,400 in the officers cadre and 1,600 class III and class IV employees. The institution has currently around 25 chief general managers (CGMs) and seven executive directors.

Of the CGMs, G Parameswaran has been promoted as the chief executive officer of IDBI Intech, while S Srinivasan is being promoted and deputed as the joint managing director of the Stock Holding Corporation of India.

The decision of the top management to freeze promotions has led to heartburn amongst employees. "Even if there is a merger, promotions should not be held back. First of all there has been no decision on which bank to merge with. Even after that, it is likely to take time as various statutory approvals including that of the Reserve Bank of India has to be obtained."

"Where is the sense then in holding back promotions? To top it all, there has been no salary hike and we continue to be paid very poorly vis-a-vis ICICI," said a senior official in the institution.

According to the new transfer policy announced by IDBI chief managing director P P Vora in October last year, interviews should have been conducted by November and the list finalised by January 2002.

The idea was to give officers enough time to finish pending work and prepare themselves for the new assignment. This has, however, not been implemented, said senior officials.

IDBI is also considering a voluntary retirement scheme (VRS) before the merger but no final decision has been taken on the issue.

Employees have made it clear that though they are in-principle not opposed to a VRS, they will not accept any cut in perquisites.