All Indian Bank Officers Association (AIBOA) has demanded for the president's intervention in LIC-IDBI bank deal. AIBOA said that President needs to ensure that none of the policy holder premium money goes for IDBI bailout.
A communication from AIBOA sought the President's help in the matter in his status as a 'Custodian of national wealth and also public sector undertakings/public sector banks’.
The AIBOA letter urged the President to advise the Finance Ministry to uphold the sanctity of these assurances and also abide by the provisions of law related to capital infusion in IDBI.
Union is saying that as per company act and Clause No 4 of the Memorandum of Association and Articles of Association, IDBI, reads as under:
“The Central Government, being a shareholder of the company, shall at all times maintain not less than 51 per cent of the issued capital of the company”.
In my personal view, LIC should not use Policyholder money for buying IDBI.
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