Delhi CM Kejriwal writes to PM Modi, opposes IDBI’s privatisation


Delhi chief minister Arvind Kejriwal on Saturday wrote to Prime Minister Narendra Modi opposing the government’s move to privatise Industrial Development Bank of India (IDBI).

In his two-page letter in Hindi, Kejriwal said, “The reason being described to privatise the IDBI is that the government intends to earn money by selling its shares. If the bank is being sold with this purpose in mind, then it will be wholly wrong.”

Kejriwal said that the IDBI was among the profit-making banks.

He said, “the financial data of the banks shows that it had the operating profit before provisions and contingencies of Rs 1,117 crores by December 2015. It’s absolutely not right to sell a profit-making bank such as the IDBI. I’m being told that the government will earn about Rs 2,000 to 3,000 crore by selling its shares.

“But the total NPA of the IDBI stands at Rs 19,615 crore, while its net NPA is Rs 9,612 crores. This is the same money that the bank has given to big corporate houses as loans and no efforts are being made to recover them. Bank employees told me that that they can recover its large part if they are given a free run.”

Kejriwal’s letter to Modi comes a day after he met an IDBI delegation. While meeting with the delegation, he had assured the members of the IDBI Officers Association that he will write to the Prime Minister, seeking withdrawal of the proposed move, which will adversely affect around 20,000 officers across the country.