Government unions from IDBI Bank protest against proposed bank privatisation

Government unions from IDBI Bank protest against proposed bank privatisation

In the bustling heart of Mumbai, at Azad Maidan, a protest was held on August 11, 2025. The United Forum of IDBI Officers & Employees, a collective representing the bank's workforce, had issued a notice for a strike in support of their demand. The cause of their struggle? The potential privatization of IDBI Bank.

IDBI Bank, currently partially owned by Life Insurance Corporation (LIC) and the Government, with LIC owning 49.24% and the Government owning 45.48%, is set to undergo a significant change. The Indian government plans to sell a majority 60.72% stake in the bank by December 2025, with the sale split between the government and LIC (each selling about 30%) to private bidders. Dubai's Emirates NBD Bank PJSC and Canada-based Fairfax Financial Holdings are reportedly the frontrunners to acquire this stake, along with other bidders like Kotak and Sumitomo Mitsui.

The sale has triggered concerns and resistance from IDBI Bank employees, who fear the loss of jobs, the erosion of the public sector character of the bank, and the potential undermining of inclusive banking policies. They stage strikes and protests, expressing their opposition to the privatization, fearing that the sale to foreign investors may compromise India’s self-reliance goals.

Financially, IDBI Bank has shown strong recovery and profitability. In FY 2024-25, the bank reported profits of ₹7,515 crore, with significant drops in non-performing assets (NPAs). This has raised debate on whether privatization is beneficial or necessary given the bank’s current performance.

The Reserve Bank of India (RBI) has approved Emirates NBD to establish a wholly owned subsidiary in India under a flexible 2013 framework, facilitating foreign banks’ local operations by adherence to Indian banking regulations. This supports Emirates NBD’s presence and the potential stake acquisition in IDBI. Past cases like Fairfax’s majority stake in CSB Bank and DBS Bank’s merger show the RBI’s willingness to approve foreign majority ownership when it leads to stability and better functioning, but involves careful regulatory oversight.

As the sale process moves forward, with regulatory approvals and robust financial recovery, the future of IDBI Bank hangs in the balance. The employees' struggle against the privatization continues, echoing the sentiments of many who advocate for the preservation of India's public sector banks.

Meanwhile, away from the turbulent waters of bank privatization, SBI Chairman C S Setty suggests that health insurers need to tie-up with local hospitals in rural areas to expand their reach. The US Market Outlook shows that the Dow Jones, S&P 500 gained, and the NASDAQ Composite closed the week at a record high. ICICI Bank, on the other hand, has raised the minimum monthly average balance requirement for new Savings Bank customers.

[1] https://www.moneycontrol.com/news/business/banking-finance/idbi-bank-sale-to-private-sector-on-cards-govt-to-offload-stake-in-q4-fiscal-2025-report-7556411.html [2] https://www.business-standard.com/article/current-affairs/idbi-bank-employees-union-to-go-on-strike-on-august-11-over-privatisation-issue-122073000832_1.html [3] https://www.thehindubusinessline.com/markets/idbi-bank-posts-profit-of-rs-7515-crore-in-q1/article65710382.ece [4] https://www.livemint.com/companies/news/idbi-bank-employees-union-to-go-on-strike-on-august-11-against-privatisation-11658122595519.html [5] https://www.bankingtech.com/2022/08/emirates-nbd-to-establish-wholly-owned-subsidiary-in-india/

1. The potential privatization of IDBI Bank, a public sector bank, has sparked a wave of resistance from its employees, who fear the loss of jobs and the erosion of the bank's public character.
2. The United Forum of IDBI Officers & Employees, a collective representing the bank's workforce, has issued a notice for a strike in support of their demand against the proposed privatization.
3. The Indian government plans to sell a majority stake in IDBI Bank to private bidders, with Emirates NBD Bank PJSC, Fairfax Financial Holdings, Kotak, and Sumitomo Mitsui reportedly in the running.
4. Financial analysis reveals that IDBI Bank has shown strong recovery and profitability, with profits of ₹7,515 crore in FY 2024-25 and significant drops in non-performing assets.
5. The Reserve Bank of India (RBI) has approved Emirates NBD to establish a wholly owned subsidiary in India, supporting their potential stake acquisition in IDBI Bank.
6. As the sale process of IDBI Bank moves forward, the future of the bank hangs in the balance, with employees' struggles echoing concerns about the preservation of India's public sector banks.

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