IDBI ELDERS FORUM is the official Group representing Retired IDBI Bank Employees. The Forum is not a Trade Union but a Welfare Organisation seeking to better a lot of Retirees and acts as a link with the Management.
The announcement of IDBI Bank privatization was first made in the Union Budget of 2021-22, following which the Cabinet Committee on Economic Affairs gave in-principle support for strategic disinvestment and transfer of management control in May 2021.
LICI and The government hold 49.24 percent and 45.48 percent stakes, respectively in IDBI Bank. The
remaining 5.28 percent of shareholding is with the public. Of this, the government (as per reports), is expected to sell 30.48 percent and LICI 30.24 percent stake, aggregating to 60.72 percent of the equity share capital of IDBI Bank.
KPMG has been appointed as the Transaction Advisor to oversee the sale and disinvestment process of IDBI Bank. Expressions of Interest (EOIs) have been invited. The last date for submission of this EOIs is January 15, 2023. KPMG has also set up a DATA ROOM a sort of repository containing information of relevance to help potential bidders take decisions.
It appears that two important items are missing from this critical DATA ROOM. These lapses have the potential to adversely impact IDBI Bank Retirees in their twilight years. Retirement Pension- Unlike the Old Age Pension (a grant), Retirement Pension is given in lieu of PF, which IDBI Bank Retirees have foregone, to facilitate Pension Pay-outs (deferred wages) Post Retirement.
The Pension Corpus is managed by the IDBI Pension Trust. The Pension Trust also has the mandate to grow the corpus by
taking informed investment decisions. IDBI Bank monthly Pension Pay-outs are not a liability on the Bank. IDBI Bank Retirees are also entitled to a Voluntary Health Scheme (VHS).
This VHS fund is a contributory Fund, which was subscribed to during their service period by certain Retirees. The Bank to pitch in by topping up the Fund as and when required. Retirees are entitled to claim certain amounts annually for both hospitalization and non-hospitalization treatment. These limits are reimbursed as per the Grades in which employees retire.
Both the above find no mention in the Data Room! This is a lapse of vital importance as Potential Buyers / Investors should be made aware that the continuation of Pension and VHS will have to be factored in when deciding on submitting their EOI / Bids.
The IDBI ELDERS FORUM has expressed its concerns by writing to KPMG the TA, Chairman, MD & CEO, Directors IDBI Bank, DIPAM, SEBI & Hon´ble FM
to ensure the inclusion of these items in the Data Room and allay the anxieties of the IDBI Retirees, who are among the most vulnerable members of society.
This article was shared with Prittle Prattle News as a Press Release.
Must Read- EduCrack aligns with
Follow Us: Facebook | Instagram | Twitter | YouTube | LinkedIn | Pinterest | Tumblr
