Concerns over the fate of IDBI Bank’s 20,000 employees have intensified as NCP (SP) MP Supriya Sule raised the issue during Zero Hour in the Lok Sabha on Monday. She questioned the government’s push for privatisation, citing past assurances that the bank would remain under public control.
MP Supriya Sule raised IDBI Bank Privatisation issue in Lok Sabha. pic.twitter.com/k2NBOsj9Mi
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“I stand here to raise the issue of IDBI Bank,” Sule said in Parliament. “When Jaswant Singh ji was the Finance Minister, he had assured that IDBI Bank would never be privatised and that 51% of its shares would remain with the government. Today, we see reports in newspapers that LIC has acquired a large stake in the bank. If those shares are sold in the market, 61% of IDBI Bank will be in private hands.”
Largest Banking Privatisation in India
The government’s decision to privatise IDBI Bank is set to be the biggest strategic sale in India’s banking and financial services sector. In January 2023, the Department of Investment and Public Asset Management (DIPAM) invited expressions of interest (EOIs) for selling a 60.72% stake in the bank—30.48% from the government and 30.24% from LIC.
Several prominent bidders, including Fairfax India Holdings, Emirates NBD, and Kotak Mahindra Bank, have shown interest in acquiring the stake. The financial bidding process is expected to conclude by May-June 2025. However, employee unions and opposition leaders have raised serious concerns over job security and the bank’s future under private ownership.
“All officers and 20,000 employees of IDBI Bank are demanding that this privatisation should not happen,” Sule said. “The bank’s non-performing assets (NPA) have reduced significantly, and it is operating efficiently. Why is the government in a hurry to sell it?”
Employees Fear Job Losses, Protests Continue
The government is expecting a significant premium over the current market price, with the 60.72% stake estimated at ₹47,400 crore. If successful, this sale could be the second-largest corporate deal in India’s history, after Walmart’s $16 billion acquisition of Flipkart.
Despite the financial prospects, the move has sparked widespread protests from IDBI employees, nearly half of whom belong to reserved categories. According to available data, the bank’s workforce includes 6,000–8,000 employees from SC/ST communities, 4,000 from OBC backgrounds, and 485 physically challenged staff members.
In January, the All India IDBI Officers’ Association held demonstrations at Jantar Mantar, leading to a 9% drop in the bank’s stock price. The association has also reached out to 25 Members of Parliament from various parties, seeking their intervention.
Political Opposition Against Privatisation
The opposition has strongly criticized the government’s privatisation push. In 2016, Delhi Chief Minister Arvind Kejriwal had openly opposed IDBI Bank’s sale, arguing that it should remain a public sector institution. That same year, BJP MP Balbhadra Majhi had also spoken against privatisation.
With the IDBI sale expected to be the largest privatisation move since Air India, the government has remained silent on its anticipated returns. However, opposition leaders, led by Sule, have vowed to keep the issue alive in the coming months.
“This issue will not die down,” Sule warned in Parliament. “We will continue to raise our voices to protect IDBI Bank and its employees.”
As the financial bidding process nears completion, all eyes remain on the government’s next move and how it addresses the concerns of employees and political opponents.
