Kejriwal opposes Centre's move to privatise IDBI

Delhi Chief Minister Arvind Kejriwal on Friday opposed the proposed privatisation of the Industrial Development Bank of India (IDBI) and supported its continuation in the public sector.

Kejriwal's support on the issue came after a delegation of IDBI Officers Association met him here on Friday and expressed their opposition to the Centre's reported move to dilute its stake in the bank to less than 50 percent.

"Kejriwal opposed the proposal to privatise the IDBI, which will adversely affect around 20,000 bank officers across the country. He assured the delegation that he will write to the prime minister to seek withdrawal of the proposed move," a Delhi government official said.

The delegation said union Finance Minister Arun Jaitely said in his budget speech in the Lok Sabha on February 29 that the Centre had no obligation to hold a minimum 51 percent stake in the IDBI, thereby effectively announcing the government intention to privatise it.

The delegation members said the announcement was a breach of an assurance held out in parliament by the then Atal Bihari Vajpayee government in December 2003, when the issue of IDBI privatisation was last taken up.

The delegation said that increase in the IDBI's non-performing assets was wrongly being projected as the reason to privatise it.

The IDBI officers pointed out that the NPA figures of Rs.19,000 crore were wrong since nearly 50 percent of this amount was recoverable dues and that too from big corporates.

Opposing the privatisation move, IDBI officers and other employees observed a four-day strike from March 28 to 31.