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The United Forum of Bank Unions (UFBU) has strongly opposed the proposed privatisation of IDBI Bank and the planned sale of a majority stake to a foreign investor. In a circular dated October 15, 2026, the bank unions urged their members to wear black badges on October 16 to protest against the government’s decision.
The UFBU said the Government of India and the Life Insurance Corporation of India (LIC) together hold around 94% of IDBI Bank’s shares. According to the unions, the bank faced financial difficulties in the past due to a high level of bad loans, but its performance has improved significantly in recent years, with the bank earning substantial profits year after year.
The unions also recalled that the government had assured Parliament during the earlier restructuring of IDBI Bank that it would retain at least 51% of the bank’s shares. However, the government is now planning to sell a majority stake in the bank, which the UFBU has criticised.
According to the circular, IDBI Bank currently has public deposits of around Rs. 3.50 lakh crore. The bank reportedly earned net profits of Rs. 5,600 crore, Rs. 7,500 crore and Rs. 9,500 crore over the last three years, respectively. The UFBU argued that selling a bank that is performing well financially is not justified.
The unions have also raised concerns about the proposed sale of a 60% stake in IDBI Bank to Fairfax, an investment company from Canada. The UFBU described the move as not just privatisation but also the transfer of control to a foreign investor. It questioned the government’s approach, pointing out that while the government promotes the idea of Atmanirbhar Bharat (self-reliant India), a major bank holding substantial public savings is being sold to a foreign investor.
The UFBU termed the proposed sale unwarranted and undesirable and demanded that the government withdraw its decision. It has appealed to all affiliated unions and their members to participate in the black badge protest on October 16, 2026, to express their opposition to the proposed privatisation of IDBI Bank.
