Lic Ipo: Bank Officers Union opposes RBI’s decision to open branches on Sunday

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Lic Ipo

Lic Ipo: AIBOC has objected to RBI’s decision to open an ASBA-designated branch on Sunday, May 8 to facilitate LIC IPO subscription. As per an AIBOC statement, the subscription for LIC IPO was opened on May 4, 2022.

Lic Ipo: The All India Bank Officers’ Confederation (AIBOC), the apex body of executives in the banking industry, has objected to the RBI’s decision to open an ASBA-designated branch on Sunday, May 8, to facilitate LIC IPO subscription. As per the AIBOC statement, the subscription for LIC IPO was opened on May 4, 2022. And till 12.30 pm on the fourth day of bidding, the IPO has been subscribed 1.44 times and the retail investor’s category has been booked 1.30 times. The share of policyholders is subscribed 4.19 times, while that of employees is 3.24 times. Qualified institutional buyers (QIBs) and non-institutional investors (NICs) bid 0.56x and 0.79x, respectively, according to BSE data.

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No application will be received in physical form

The union said that when an online subscription is being widely used among investors, why is RBI asking them to open branches on Sunday. Most of the branches are ASBA (Application Supported by Blocked Amount) designated with rapid digitization. “Given the widespread use of online IPO subscriptions among investors, we are of the view that most branches will not receive a single application in physical form on Sunday,” AIBOC said in a statement. In such circumstances, the decision to keep all banks open and branches open is different and banks cannot afford such huge expenses.

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Estimated to spend more than 100 crores

While DIPAM has been overzealous in asking branches to work on holidays, it said, RBI has not assessed the actual need to keep all branches open. This decision will not yield any results but will incur a huge financial burden, which is estimated to exceed Rs 100 crore on account of workers’ compensation and other operating costs, to keep branches open on holidays.

RBI gave instructions

The union said keeping all these aspects in mind, the RBI should review its decision and withdraw its order to open branches on Sunday. On May 4, the Reserve Bank of India had directed banks that all ASBA-designated branches be open to the public on Sundays to facilitate the processing of applications for LIC’s initial public offering (IPO). The country’s biggest offering to date, LIC’s IPO, is closing on 9 May.

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