IDBI Officers and Employees’ Nationwide Strike Against Privatisation, Demand Policy and Staff Changes

Image: Press release of IDBI strike from August 11, 2025.

Key Demands:
The unions have listed nine main issues, including:

• Stopping the sale of IDBI Bank to private or foreign entities.
• Recruitment of 5,000 clerks and 2,000 sub-staff.
• Measures to address alleged toxic work culture.
• Introduction of a bilateral transfer policy for officers.
• Issuance of branch categorization circular.
• Furniture facilities for officers.
• Quarterly structured meetings between staff and management.
• Reintroduction of medical assistance fund for workmen.
• Implementation of promotion settlements for matriculate Class IV staff.

In earlier reports, banking unions had repeatedly warned that IDBI’s strategic sale would erode its public mandate, pointing out that schemes like interest-subvention KCC loans, unsecured education loans, and small-ticket lending in rural areas had already been curtailed after its reclassification as a private sector bank in 2019. Union leaders at the time argued that further dilution of Government stake could permanently shift the bank’s priorities towards profit over public service.

Nationwide Unity
The strike saw participation from IDBI branches across major cities including Mumbai, Kochi, Thrissur, Nagpur, Kolkata, Vijayawada, Thiruvananthapuram, Visakhapatnam, Bengaluru, Kozhikode, Coimbatore, Chandigarh, Rajahmundry, etc. Union leaders said the turnout reflected a pan-India pushback against the privatisation move, with employees from metropolitan, urban, semi-urban, and rural branches joining the protest in solidarity.

Image: Employees participating in the protest against IDBI privatisation from Colaba, Mumbai, Mharashtra.
Image: Employees from Kochi, Kerala.

Image: Employees from Thiruvananthapuram, Kerala.
Image: Employees from Thissur, Kerala.

Image: Employees from Kozhikode, Kerala.
Image: Employees from Sanvidhan Chowk, Nagpur, Maharashtra.
Image: Employees from Kolkata, West Bengal.

Image: Employees from Vijaywada, Andhra Pradesh.

Image: Employees from Vizag, Andhra Pradesh.

Image: Employees from Rajahmundry, Andhra Pradesh.

Image: Employees from Bangalore, Karnataka.

Image: Employees from Coimbatore, Tamil Nadu.

Image: Employees from Chandigarh protesting against IDBI privatisation.

Concerns Raised:
Union leaders argue that privatisation could:

• Limit access to subsidized loans for farmers and small businesses.
• Halt unsecured education loans for needy students.
• Affect participation in social schemes like PMJDY, PMSBY, PMJJBY, and APY.
• Risk deposit safety beyond ₹5 lakh in case of a moratorium.

They cite past failures of private sector-controlled banks such as Punjab & Maharashtra Co-operative Bank, Lakshmi Vilas Bank, and YES Bank to highlight depositors’ vulnerability.

Background of IDBI Bank
Established in 1964 as a wholly owned subsidiary of the Reserve Bank of India, IDBI was later transferred to Government of India ownership in 1976. It played a major role as a development financial institution before being reclassified as a commercial bank. In 2019, LIC acquired a 51% stake from the Government, making it the majority shareholder.

Following Cabinet and Ministry of Finance approvals in recent years, strategic disinvestment plans have progressed. Current bids involve reducing combined Government and LIC holdings to below 51%, which unions say will effectively privatize the bank.

Union’s Call
The UFIOE has urged the Government to:
1. Restore its stake to at least 51% by acquiring 6% from the market or from LIC.
2. Ensure RBI treats IDBI as a public sector bank for regulatory purposes.
3. Reinstate its role as a development bank.

The strike affected operations across 2,100-plus IDBI branches, with employee participation from various categories including SC, ST, OBC, EWS, women, and specially-abled staff.