Center of Indian Trade Unions (CITU) condemns Modi government’s direction to LIC to acquire 51% stake in debt-ridden IDBI bank and also the IRDAI for giving permission violating its own norms of not allowing LIC to hold more than 15% shares in banks.
This move of Modi government will be helping the corporates, who have dragged IDBI into huge losses through NPAs, and the government itself by mopping up over Rs.13,000 crore from LIC to meet its fiscal deficit.
LIC is the only insurance company which is having a track record of 99.92% of claims settlement and is having the highest confidence of the public. This move of the government will lower the small investors like workers, presents, middle class employees and professionals’ confidence in LIC. This act of the government is also to favor private players in insurance sector.
In a letter to LIC chairman on 25 June, the biggest oraganisation of LIC employees, All India Insurance Employees Association (AIIEA), opposed LIC’s taking over 51% shares of debt-ridden IDBI bank.
CITU demands of IRDAI to withdraw its exceptional decision allowing LIC to acquire 51% stake in loss making IDBI bank and of the Modi government to desist from pressuring LIC to acquire 51% shares of IDBI.