SYSTEMATIC ORPHANIZATION OF IDBI ON THE WAY FINALLY : IT IS NOT THE ERA TO SELL PUBLIC SECTOR BANKS UNTIL 2050
SYSTEMATIC ORPHANIZATION OF IDBI ON THE WAY FINALLY : IT IS NOT THE ERA TO SELL PUBLIC SECTOR BANKS UNTIL 2050
Industrial Development Bank of India (IDBI) is going through the life cycle exactly that a Beautiful and Popular Heroine of Bollywood goes through her life cycle ultimately. When in youth all the Glamour, Awards and Accolades, slowly getting into Sister-in-law Roles, then to not so important mother and grand mother roles in dramatics, and finally deserted, some of them even had the fate of destitutes in the end.
In
1964, post-independence, when India needed the Industrial Development
the most, an act was passed by Indian Parliament known as Industrial
Development Bank of India Act, 1964 to establish IDBI as a 100%
subsidiary of RBI and later in 1976 it was transferred as 100% ownership
of Government of India.
In the Pre-liberalization Era, prior of 1991, it is IDBI who pioneered the Industrial Development
in India, nobody can have the courage to deny it. Later it was converted
to a commercial Bank called as IDBI Bank.
A
couple of years back, the Government of India (GOI), has allowed 49%
Stake in IDBI Bank to LIC ( Life Insurance Corporation ), that is a
wholly owned subsidiary of GOI as the pre-cursor. Now finally the move
is being made, to sell 60.72 % stake of GOI and LIC both, leaving the
Management Control to a Private Bidder whoever would finally come in.
The two way process to Systematically Orphanize the IDBI Bank out of its
natural parents GOI is described in the Mint News Report, the link of
which is placed below.
It
pains to hear, when a Public Sector Bank such as IDBI, that played a
very critical role in Industrial Development of India when we needed the
most to be systematically orphanized. In fact it pains a lot when
anyone says to sell a Public Sector Bank of India. The Private Banks in
India could be as dirty as any dirty privately owned entities, the
Surface Cosmetics does not convince me of the dirt they harbour inside.
Our Public Sector Banks are still much better, we have a legitimate say
on the National Assets at their command, unfortunately the citizens have
little room to open mouth before the private banks, lest the Goons will
be engaged to intimidate them by the very private banks.
As much as even known in public domain, the private banks are no substitute to our long time work horses that are our Public Sector Banks.
We
need 100-years post-independence for consolidation, Sale of any Public
Sector Bank before 2050, is not a good move, in the National Interest, I
have no hesitation in saying this.
About the Author : Dr. Nimain Charan Biswal is a B.Sc.(Agri. Science and Technology), M.B.A. and Ph.D.(Management Area ) by qualifications; and he has 36+ years of work experience in both industrial and development sectors in diversified fields of social importance. He has been educated at Orissa University of Agriculture and Technology (OUAT)-Bhubaneswar, Institute of Rural Management Anand (IRMA) and Gujarat University (with Resource Support of IIM-Ahmedabad). He is further educated at IIM-Calcutta, XLRI-Jamshedpur, Apple Computer Industries and Spar Inc., USA. He has worked for reputed National and International Organizations in Senior/Top Management Capacities at Board level as well as Managing Director and CEO. He is a management expert covering extensive areas from management in industrial sectors, management in agriculture and dairy, development management to management of public systems. He is a prominent professional of India and known Internationally as well. He lives at Mumbai in India.
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