Bidders interested in Properties owned by IDBI Bank and not in Financial Services: IDBI Bank Staff

The Government of India plans to privatise the IDBI Bank by December 2025. But as per Unions view point, there is no reason why this profit-making entity should be sold to private entities with foreign origin such as Emirates NBD from Dubai and Fairfax Financial Holdings Limited. As per reports, these two entities are of foreign origin from Canada and are the main contenders in purchasing IDBI Bank. This is absurd more particularly when the BJP lead NDA Government is in power which always stands for Swadeshi and self-reliance.

As is perceived by the Unions, bidders are no more interested in extending financial services but are interested in various real estate properties owned by IDBI Bank including 50 Acres property in Hyderabad, Telangana. Since the Central Government is anxious to complete the process early, it seems that the Bidders are bargaining hard to obtain various concessions and relaxations from the Government of India as also Regulators.

The Unions have drawn the attention of people’s representatives to the assurance given by the then Hon’ble Minister of Finance, Shri Jaswant Singh to Lok Sabha on 08.12.2003 and Rajya Sabha on 15.12.2003 that Government shall at all times maintain not less than 51% equity holding in IDBI as a Banking Company. The above assurance given by the Hon’ble Finance Minister to the Parliament was taken on the records of the Government Committee on Assurances.

As on date, in IDBI Bank, the Central Government owns 45.48% while the Central Government owned entity LIC owns 49.24% and Department of Investment and Public Asset Management (DIPAM) of Ministry of Finance is in the process of selling 30.48% of Central Government share and 30.24% of LIC’s share which it means 60.72% of IDBI Bank share will go into the private/foreign hands and if it works out, Unions apprehend that the new entity will work only for accounting profits by compromising with the social profits.

IDBI Bank Employees protest at Jantar Mantar, Delhi against Privatisation of IDBI Bank. As per reports and sources, the bank may be privatised completely by December this year. pic.twitter.com/b5Lb5Uag10

— Hellobanker (@Hellobanker_in) July 26, 2025

As on date, IDBI Bank is catering to 2 crore depositors including 18.72 lakh Jan Dhan Account holders. In addition to this, IDBI Bank caters to social priorities and is earning significant profits along with social profits. In the proposed sale process, common man such as Agriculture, small business, trade will become casualty. The Union also apprehends looking to the track record of potential bidders that they will exit from the ownership by disposing off the precious real estate properties owned by the IDBI Bank by betraying with the Depositors of whose confidence has been gained by the employees by extending excellent services.

IDBI Bank was operating as Development Financial Institution (DFI) from 1964 to 2004 and as a universal bank since then and is operating with 2,108 Branches across the country. Institutions like Securities and Exchange Board of India (“SEBI”), National Stock Exchange of India (“NSE”), the National Securities Depository Limited (“NSDL”), Stock Holding Corporation of India Limited (“SHCIL”), Credit Analysis & Research Limited, the Exim Bank (India), Small Industries Development Bank of India (“SIDBI”) and Entrepreneurship Development Institute of India were built with the support of IDBI. IDBI Bank has played a crucial role in the industrial development, infrastructure development and in generating employment by extending financial assistance.

United Forum of IDBI Officers and Employees organized a Dharna on July 26, 2025 before Parliament during Monsoon session to draw the attention of the Members of Parliament from various political parties on the subject.

As on 31.03.2025, there is a representation of SC (2,923), ST (1,156), OBC (5,415), EWS (675), female (6,911) and differently abled (884) employees and workers in the total manpower of IDBI Bank. Those underprivileged sections of the Society will be casualty consequent upon privatization. Also, the protection enshrined in Section 5(1) of the IDBI (Transfer of Undertaking and Repeal) Act, 2003 with regard to the continued protection of service conditions including Pension and Superannuation benefits will stand endangered.

The United Forum is also seeking an appointment with the Hon’ble Minister of Finance and Hon’ble Prime Minister to share their concerns with a request to stall the process of disinvestment of IDBI Bank in the interest of IDBI Bank and its three crore customers and 20,000+ employees and also in the national interest.