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The News Express Service
NEW DELHI: Congress and the Left criticized the government's decision to buy a stake in the IDBI bank asking why a government insurer has bailed out a failing bank for a cost of Rs 13,000 crore
The opposition attack came after the board of directors of the Insurance Regulatory Development Authority of India (IRDAI) approved the investment of the Life Insurance Corporation in IDBI Bank, allowing LIC to hold up to 51% of the besieged lender. Congress spokesman Priyanka Chaturvedi said: "As the majority owner of the bank, LIC will have to continue to inject capital into the bank, to keep it in the coming years." IDBI Bank is the weakest public sector bank whose fourth-quarter losses increased to Rs. 5,663, gross NPAs to Rs. 55,588.26, and its bad debt rate was nearly 28 per cent.
Sitaram Yechury, head of the CPI-M, urged the government to stop this loot. "LIC is the depository of popular savings in the form of insurance policies.
Using this capital to bail out the worst failing bank equals a public spoils of popular savings, "Yechury said, adding that" LIC is not supposed to be in. The regulatory mechanism is destroyed by the Modi government so that the defaulters do not have to repay what is happening. "
Congress and CPI-M accused the government of being pro-rich." Returning the defaulters rich, by diverting people's money, LIC is public money, why not the recovery of the loans of the rich defaulters, the nepotism of the worst kind by this government, the rich can plunder, the common mortis will repay its loans, "said Yechury
" The only motto of the government Modi is to tighten the hard-earned economies of the people, "added Mr. Chaturvedi.
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