Chandigarh, Representatives of the United Forum of IDBI Officers and Employees recently met with Hon'ble Members of Parliament from several political parties to express serious concerns regarding the proposed strategic disinvestment of IDBI Bank, a consistently profitable government entity. The meeting, which included MPs from Bharatiya Janata Party, Indian National Congress, Samajwadi Party, and other major parties, urged immediate intervention to prevent the sale of IDBI Bank to private or foreign entities.
IDBI Bank has been reporting consistent profits over the past four years, including Rs. 1,359 crore in 2020-21, Rs. 2,439 crore in 2021-22, Rs. 3,645 crore in 2022-23, and Rs. 5,634 crore in 2023-24, with an expected profit of Rs. 7,000 crore for the 2024-25 financial year. The bank's financial health is robust, with Gross NPA at a historically low 3.68% and Net NPA at just 0.20%. The provision coverage ratio stands at 99.42%, further emphasizing its strong position in the banking sector.
The forum expressed concern over the government's decision to sell 60.72% of the bank's shares, which includes the divestment of both the central government’s 45.48% stake and LIC’s 49.24% stake. The unions argue that such a move would lead to the control of the bank by foreign entities such as Emirates NBD from Dubai and Fairfax Financial Holdings from Canada, who are reportedly the leading bidders. The unions view this sale as detrimental, not only because of the potential loss of national control over a strategically important institution but also due to the risk of privatization of IDBI Bank’s social objectives. The bank currently serves over 2 crore depositors, including 18.72 lakh Jan Dhan account holders, and plays a crucial role in promoting social priorities such as agriculture, small businesses, and trade.
The unions also reminded the parliamentarians of an assurance made by former Finance Minister, Shri Jaswant Singh, in 2003 that the government would retain a majority stake in IDBI Bank, never selling more than 51%. With the current disinvestment proposal, the unions fear the new owners might prioritize short-term profits at the expense of the bank’s social mission, including its commitment to its employees, depositors, and the communities it serves.
The United Forum of IDBI Officers and Employees has requested an urgent appointment with the Hon’ble Minister of Finance and the Hon’ble Prime Minister to convey their concerns and request a halt to the disinvestment process. They argue that the potential sale of IDBI Bank to private or foreign entities could have serious consequences for the bank’s employees, its customers, and the national interest as a whole. IDBI Bank has been a key player in India's industrial and infrastructure development since its establishment in 1964 and has over 2,000 branches across the country.