SME Times News Bureau | 18 Dec, 2018
The Delhi High Court on Monday dismissed a plea challenging the LIC move
to acquire 51 per cent stake in the government-owned IDBI Bank.
Vibhu Bakhru dismissed the All India IDBI Officers Association plea
challenging LIC purchasing the stake in the IDBI on the ground that
change in shareholding could take away the public sector bank status.
association had moved the court pleading that IDBI's loss of status as a
"public sector bank" would adversely affect the employment conditions
of its employees, especially the ones belonging to SC/ST and OBC
The plea had also challenged the Centre's move to disinvest its stake in the public sector bank.
Cabinet on August 1 approved the purchase of a controlling 51 per cent
stake in the IDBI by the state-run LIC which would result in the
government becoming a minority shareholder.
The nod was a bid to turnaround the loss making government-owned IDBI Bank struggling with accumulated bad loans.
gross non-performing assets (NPAs), or bad loans, amounted to a
staggering Rs 55,600 crore at the end of the fourth quarter ended March.