Nothing to fear": Top bureaucrat says IDBI staff, pensioners' service conditions
Benchmarks Nifty22,600.00-87.66FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.69 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.25 % Invest NowEnter search…
The DIPAM secretary's assurance comes as IDBI Bank employees oppose the government’s divestment plan and have called for a strike across the lender’s branches in early November. The United Forum of Bank Unions has also extended support to the proposed strike.
The proposed sale of IDBI Bank to Canada’s Fairfax Financial Holdings will not alter existing employees’ service conditions or affect pension commitments, a senior government official said on October 23, seeking to allay concerns among staff protesting against the transaction.Arunish Chawla, secretary of the Department of Investment and Public Asset Management (DIPAM), said the Rs 52,878-crore deal involving the sale of more than 60% stake in the lender would protect the interests of existing employees and pensioners, PTI reported.
Under the share purchase agreement, the strategic buyer cannot change or modify employees’ service conditions to their disadvantage, Chawla told PTI.
His assurance comes as IDBI Bank employees oppose the government’s divestment plan and have called for a strike across the lender’s branches in early November. The United Forum of Bank Unions has also extended support to the proposed strike.
Also read | Banks see ₹5.19 lakh crore deposit outflow, credit shrinks ₹2.52 lakh crore
Live Events
Addressing concerns over retirement benefits, Chawla said a dedicated pension fund had been set aside and existing commitments to pensioners would continue to be honoured.
He also clarified that IDBI Bank is not a nationalised bank and that its employees’ service conditions are determined by the bank’s board in consultation with employees, rather than directly by the Union government.
Chawla said the lender would continue to operate as a board-managed company after the transaction, with its operations governed by the same company and labour laws that apply today.
The bank is being restructured as a going concern, he said, indicating that the change in ownership would not alter its basic legal and operational framework.
The proposed transaction has brought employee concerns over job conditions and retirement benefits into focus as the government moves ahead with the strategic sale. The assurances from DIPAM are aimed at clarifying the protections available to existing staff and pensioners under the agreement.
Also read | RBI tightens leverage ratio rules, keeps minimum capital thresholds unchanged
While the ownership structure is set to change following the sale, the government’s position is that existing employees’ service conditions cannot be modified to their disadvantage by the buyer, and pension obligations will continue to be met.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onidbi bankIDBI Bank saleFairfax Financial HoldingsDIPAMIDBI Bankidbi fairfax deal
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...moreless(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onidbi bankIDBI Bank saleFairfax Financial HoldingsDIPAMIDBI Bankidbi fairfax deal
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
