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‘Education Loans Will No Longer Be Available’: IDBI Officers' Association Warn Against Privatisation Move
The All India IDBI Officers' Association, as part of its national-level campaign, held a zonal meeting through its Bhubaneswar Zone to highlight concerns over the proposed privatisation of IDBI Bank. The association urged the Government of India and LIC to retain IDBI Bank as a Public Sector Bank due to its role in social sector banking and financial inclusion.
Author: Kalyani Mali
Published: July 8, 2025
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A zonal meeting of the All India IDBI Officers’ Association (AIIDBIOA), Bhubaneswar Zone, was held on July 6, 2025. The meeting saw participation from General Secretary Vithal Koteswara Rao, Bhubaneswar Zone Secretary Goutam Pattanaik, President Lalatendu Behera, and Vice President Debabrata Behera. The primary agenda was to emphasise the need to preserve the public sector character of IDBI Bank.
IDBI Bank’s Role in Public and Social Sector Banking
The speakers at the meeting underscored that IDBI Bank, as a Public Sector Bank, has been actively involved in implementing social sector schemes. IDBI Bank has more than 18.72 lakh accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY), more than 10.86 lakh account holders under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), more than 3.81 lakh account holders under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and over 5.48 lakh accounts under the Atal Pension Yojana (APY).
Image: Members of AIIDBIOA Bhubaneswar Zone gather during the zonal meeting
Aadhaar and Skill Training Support
IDBI Bank operates 191 Aadhaar Enrolment Centres across India. It also runs a Rural Self Employment Training Institute (RSETI) in Satara District, which has trained 7,165 students, out of which 5,241 have been settled.
Concern Over Privatisation
The association stated that if the Bank is privatised, unsecured small Education Loans to needy and poor students will no longer be available, and the Bank will be unable to continue lending under schemes like MUDRA, PMSVANIDHI, Stand Up India. These are normally offered as unsecured loans to small business customers, which the private sector may stop.
Call to Retain Majority Stake
The association highlighted that IDBI Bank has posted continuous profits over the last five years, ranging from ₹1,359 crore in FY 2020–21 to ₹7,515 crore in FY 2024–25. Citing this performance, the association requested that LIC of India and the Government of India retain at least 51% stake in the Bank.
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Appeal to Restore Public Sector Status
AIIDBIOA urged the Government of India to reclaim a 6% stake from the market to ensure that LIC of India holds 51% equity in IDBI Bank, thereby reinforcing majority government ownership. The association emphasised that this step would honor earlier assurances made in Parliament. It also requested the Reserve Bank of India (RBI) to reclassify IDBI Bank as a Public Sector Bank for regulatory purposes, given that LIC and the Government currently hold a combined 59% stake. Additionally, the association called for the restoration of IDBI Bank’s role in development banking.
The zonal meeting of the AIIDBIOA, Bhubaneswar Zone, brought attention to the bank’s role in implementing key government schemes and providing financial support in rural and underserved areas. The association presented data on the bank’s performance and appealed to the Government of India and LIC of India to retain a majority stake, allowing IDBI Bank to continue functioning as a Public Sector Bank.
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