panel repeals Act to convert IDBI into a bank
29 July 2003
Parliamentary Standing Committee on Finance has approved
repeal of the IDBI Act, paving the way for conversion
of the largest financial institutions into a bank.
IDBI Bill of 2002, which was introduced in the winter
session of the Indian parliament last year, was referred
to the standing committee.
officials say the report of the panel headed by Janardhana
Reddy that was tabled in the parliament last week, strongly
recommended the government to retain its 51-per cent,
grant tax exemptions for five years and offer a voluntary
retirement scheme (VRS) package.
is no specific provision in the Bill providing for the
converted entity to act as a development bank. Rather,
the reference of the development bank is being substituted
by IDBI banking company, the officials add.
deep concern over the absence of adequate provisions in
the Bill to protect employees' interest, the committee
said a special VRS package should be launched for the
present employees of IDBI so that no employee of any category
is aggrieved due to its conversion into a bank.
IDBI becomes a bank, its employees may be required to
possess specific professional skills and may be required
to be posted in new locations as the bank expands its
of reports on IDBI Bank
of general reports on Banking
of reports on finance: policies