A two-day nationwide strike by IDBI Bank officers and employees ended. They were protesting against the proposed sale of a majority stake in the bank to Canada-based Fairfax Financial Holdings. The union will decide its next step at a meeting on November 10.
The United Forum of IDBI Officers and Employees organised the strike. It said it will consider stepping up its protest and seek wider support from bank unions across India.
Convener Devidas Tuljapurkar said the strike drew a massive response from employees and officers nationwide. The union’s core committee will decide how to intensify the struggle at a meeting after Diwali, on November 10, he said.
Seeking Wider Union Support
Tuljapurkar said the union will approach the United Forum of Bank Unions (UFBU) for support. That could include a call for a nationwide strike.
He said the union is seriously concerned that the deal may undervalue IDBI’s properties, institutional capabilities, customer relationships, future earnings and strategic importance. He said the government must disclose how it valued the bank. That includes the method, the assumptions, the treatment of real estate and other assets, and the basis for accepting the sale price. The public deserves evidence that a national asset is not being sold at a throwaway price, he said.
The union also wants open scrutiny of the buyer. It called for a review of Fairfax’s ownership structure, financial strength and regulatory record. It also wants a look at any substantiated controversies in its home country.
Political Criticism
The Opposition has also criticised the sale. The Congress called the disinvestment a scam. It demanded that the sale to a foreign company be stopped. It also asked for a Joint Parliamentary Committee to investigate the whole process.
Congress general secretary in charge of communications Jairam Ramesh alleged, in a post on X, that a foreign company is buying IDBI Bank from the government using funds that belong to the bank itself. He called the sale another major scam by the Modi government and demanded that it be halted.
The Deal
On October 14, the government approved the sale of a 60.72 per cent stake in IDBI Bank to Fairfax for about ₹53,000 crore ($5.5 billion). It would be the largest foreign investment in an Indian bank. It would also be a major step in India’s long-delayed bank privatisation drive.
Fairfax, led by Canadian billionaire Prem Watsa, will buy the government’s 30.48 per cent stake, valued at about ₹26,620 crore. It will also buy LIC’s 30.24 per cent stake, valued at about ₹26,440 crore. The government holds 45.48 per cent of IDBI Bank and LIC holds 49.24 per cent.
Fairfax will pay ₹81 a share. That is above the benchmark fair value of ₹75.99 set by two independent valuation agencies. The deal is expected to close by the end of the current financial year, subject to Reserve Bank of India (RBI) clearance.
The Workforce
IDBI Bank has 19,108 employees. They include 9,500 from Scheduled Caste, Scheduled Tribe and Other Backward Class communities. The staff also includes 6,911 women and 884 differently abled employees.
