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UFBU has released a new letter regarding privatisation of IDBI Bank.
Read what UFBU said 👇
On 14th October, 2026 the Cabinet Committee on Economic Affairs of the Government of India gave its approval to the proposal to sell 60% of the share-holding of the Government and LIC in IDBI Bank to a private investor, Fairfax Financial Holdings Ltd. from Canada. Thus, IDBI Bank, in which at present Government and LIC hold 94% of the equity capital, will now become a foreign Bank.
Assurance in Parliament: Earlier in 2003 when IDBI converted as a deemed banking company, Government assured the Parliament on 8-12-2003 – (BJP’s then Finance Minister Shri. Jaswant Singh gave the assurance on the floor of the Lok Sabha) that at any point of time, the Government shall hold not less than 51% of the shares. Now the Government has violated this assurance.
Public savings: Total Public Deposits in the Bank today is around Rs. 3,50,000 crores. Bank earned net profit of Rs. 5600 crores, Rs. 7500 crores and Rs. 9500 crores in the last three years (total of Rs. 22,600 crores in 3 years). Thus, a performing and profit making Bank is being sold away.
Reservation Policy will end: Because Government and LIC hold 94% of the shares and hence the owners of IDBI Bank, now the Bank is implementing the Reservation Policy for SC/ST/OBC/Ex-servicemen, etc in the recruitments, promotions, etc. If the Bank will become a private foreign bank, this Reservation Policy will not be implemented.
Selling the Bank is selling the public savings: Government may call it as strategic restructuring, strategic disinvestment, etc. But it is nothing but sale of an important Bank to a foreign investor. It is nothing.
