Bank strike? IDBI Bank threatens protest from next Monday; Share price plunges 7%

IDBI Bank share price tanked over 7 per cent on Friday after a strong run earlier this week. The fall came after a section of IDBI Bank officers threatened to go on a six-day strike from Monday in protest against the proposed acquisition of the state-owned lender by insurance behemoth LIC and wage related issues, among others.

IDBI Bank share price tanked as much as 7.19 per cent to Rs 52.25 on the BSE. The stock had rallied over 18 per cent between last week on Friday and Wednesday.  

"It is advised that the bank has received notice from a section of officers that they propose to go on strike from July 16, 2018 to July 21, 2018," IDBI Bank said in a regulatory filing.

Wage revision for IDBI Bank employees are pending since November, 2012. They had threatened to go on strike last year but later it was called off following assurance from the management, reported PTI. 

Meanwhile, in a representation to Union Finance Minister Arun Jaitley, the All India IDBI Officers' Association had opposed the up to 51 per cent sale of the bank's equity to LIC, saying the move tantamounts to privatisation of the bank.

"The subjective move of the Government of India tantamount to reneging on the solemn assurance given by the then Finance Minister of the NDA Government on the floor of Parliament on December 8, 2003 that post conversion, the government shall at all times, maintain not less than 51 per cent of the issued capital of the Company," said association's General Secretary Vithal Koteswara Rao.

WATCH ZEE BUSINESS VIDEO HERE

He had cautioned that in the unfortunate eventuality of the government failing to review its stand in the matter, the officers and employees of IDBI Bank will be left with no other option but to take recourse to organisational forms of action.

Meanwhile, sources told PTI that after getting a go-ahead from the insurance regulator Irdai, LIC is preparing itself to complete the 51 per cent acquisition of debt-ridden IDBI Bank by the end of September.

At present, Life Insurance Corporation (LIC) of India is doing due diligence of IDBI Bank, its assets, debt position and fixed assets.