The All India Bank Officers’ Confederation (AIBOC), the banking industry’s apex body, has objected to the RBI’s decision. To open ASBA-designated branches on Sunday, May 8, to facilitate LIC IPO subscription.
According to the statement by the AIBOC. “the subscription for the LIC IPO was opened on May 4, 2022, and on the second day of bidding the IPO is subscribed 1.03 times, with policyholders bidding for 3.11 times, staff 2.21 times, and retail investors 93%. With the closing date being on May 9, 2022 and 4 days still remaining for bidding. We fail to fathom out the reason for the RBI Notification for opening the Branches on Sunday”.
The union also questioned why the RBI is requiring them to open branches on Sunday when online subscriptions are widely used by investors.
The majority of the branches are ASBA (Application Supported by Blocked Amount) designated. Indicating that they are ready for rapid digitisation.
“Considering extensive usage of online subscription of IPO among the investors. We are of the considered view that most of the branches will not get even a single application. On Sunday in the physical format. In such circumstances, the decision to keep open all the bank branches is per se farcical. And banks cannot afford to bear such humongous expenditure”. AIBOC said in a statement.
— All India Bank Officers' Confederation (@aiboc_in) May 6, 2022
Considering all of these factors, the RBI should reconsider its decision. Also, rescind its order to open branches on Sunday, according to the union.
The Reserve Bank of India directed banks on May 4 to keep all ASBA-designated branches open. Moreover, to the public on Sunday to facilitate the processing of applications for the LIC’s initial public offering (IPO).
Therefore, the IPO of the state-owned LIC, the country’s largest-ever offering, closes on May 9.