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IDBI Privatisation: Govt. Moves Ahead with Proceedings; Employees' Unions Stand Firm in Resistance
The union government advances IDBI Bank’s privatisation through the Department of Investment and Public Asset Management(DIPAM), while employee unions and political leaders persist in opposing the move, citing national interest, public ownership, and employee welfare concerns.
Author: Abhivad
Published: April 11, 2025
The Government of India is pushing forward with the privatisation of IDBI Bank as part of its strategic disinvestment programme. The Department of Investment and Public Asset Management (DIPAM) is overseeing the process, which involves the sale of a 60.72% stake jointly held by the Government and the Life Insurance Corporation of India (LIC).
Privatisation Process and Recent Updates
The privatisation of IDBI Bank has been underway for over two and a half years. In October 2022, the Government of India and LIC invited Expressions of Interest (EoIs) to sell a combined 60.72% stake in the bank—30.48% from the government and 30.24% from LIC.
On 09 April 2025, DIPAM Secretary Arunish Chawla informed the media that asset valuers have been appointed to assess IDBI Bank’s valuation. He added that the DIPAM is currently deliberating on the shareholder agreement to be signed with the prospective buyer, affirming that the strategic sale is "moving ahead" in line with the government’s decision.
The disinvestment is subject to regulatory clearances, including approval from the Reserve Bank of India (RBI). A virtual data room has been created for due diligence, and the facility to respond to queries from interested buyers remains open. Once the asset valuer and transaction advisor submit their reports, a reserve price will be set, followed by the opening of financial bids.
Read more: IDBI Bank's Struggle: Wilful Defaulters Owe ₹26,562 Crore!
Unions and Political Opposition Persist
Despite the government's progress, the move continues to face strong resistance from employee unions and political leaders. The United Forum of IDBI Unions has reiterated its commitment to resist the sale. Vitthal Koteshwara Rao, a leader of the forum, told Kanal, "We are confident of retaining IDBI in the public sector. As a Development Financial Institution (DFI) it must remain in public ownership. The united forum of IDBI unions will be resisting the sale of IDBI until the proposal is withdrawn. It is not just a matter of IDBI staff, it is an issue of national interest. The united forum is looking forward to mobilising a wider solidarity for the struggle against the privatisation move."
The unions argue that as a DFI, the privatisation of IDBI Bank is not only complex but also contrary to its founding objectives. Furthermore, they highlight that concerns over inclusivity, reservation policies, and employee welfare are at risk under private ownership. Several demonstrations have been organised, including a recent one at Jantar Mantar, New Delhi, to oppose the move.
Read more: IDBI Bank Acquisition: Concerns Mount Over Bidder’s Control of CSB Bank
Concerns Over Transparency and Stakeholder Interests
Critics have raised questions about the transparency of the process, citing ongoing issues such as the control of other financial institutions by prospective bidders and the lack of clarity regarding protections for marginalised employee groups.
The government maintains that the disinvestment aligns with its broader plan to reduce its direct role in the banking sector. However, unions remain committed to resisting the sale until the government withdraws the proposal.
As the government prepares for the final stages of IDBI Bank’s privatisation, employee unions continue to voice opposition. While DIPAM accelerates the sale process, the unions plan to intensify their agitation, asserting that the bank’s public sector character must be preserved in national interest.