By Dr. Gyan Pathak
Industrial Development Bank of India (IDBI) will soon be placed in a foreign hand, which the nationalist prime minister Narendra Modi’s BJP led NDA government said doing it in the national interest of the country. Employees and officers of IDBI on the other hand went on two days nationwide strike on November 2 and 3, 2026 alleging it an anti-India act which raised “serious questions of public accountability and national interest.” The United Forum of IDBI officers and employees (UFIOE) have decided a core committee meeting on November 10 to decide its next course of Action.
UFIOE convenor Devidas Tuljapurkar has said that they would also approach the Union Forum of Bank Unions (UFBU) – the umbrella organization of seven bank unions AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC, and INBEF – to get their support, including a nationwide strike call. “We are seriously concerned that the transaction may undervalue IDBI’s properties, institutional capabilities, customer relationships, future earnings and strategic importance,” he said.
Centre has already approved sale of 60.72 per cent government stake in IDBI to Canada’s Fairfax Financial Holdings for about Rs 53,000 crore (USD 5.5 billion). Fairfax will be the strategic buyer of the government’s 30.48 per cent stake, valued at about Rs 26,620 crore, and the 30.24 per cent stake held by LIC, valued at about Rs 26,440 crore. It would be the largest foreign investment in an Indian bank and will be a major step towards overall banking privatisation in the country. Canadian billionaire Prem Watsa-led Fairfax will pay Rs 81 per share, higher than the benchmark fair value of Rs 75.99 determined by two independent valuation agencies. The process is expected to be completed by the end of the current financial year, subject to regulatory clearance from the Reserve Bank of India.
IDBI is not a common bank, but an industrial bank which have played an important role of industrial development of India. Putting this on a foreign hand is just like putting the industrial development of India in foreign hand which will decide what to do in relation to the bank’s operation, and how to manipulate India’s industrial future and its people. Currently, IDBI has on its rolls 19,108 employees, including 9,500 employees belonging to SC, ST and OBC categories. It also has 6,911 women employees and 884 differently abled employees.
The all India two days strike on November 2 and 3 was organised just weeks after the Canadian billionaire Prem Watsa led Fairfax agreed to acquire a 60.72 per cent stake in IDBI. The striking employees and officials questioned the process of its sale. After the sale Government of India will retain 15 per cent of its stake and LIC 19 per cent, which must further come down to 15 per cent within two years.
Thereafter, Fairfax will be required to progressively reduce its equity holding in IDBI down to 26 per cent within 15 years of the acquisition per RBI regulation. Fairfax must either merge CSB Bank with IDBI Bank or divest its CSB Bank holding within two years, alongside an anticipated open offer for minority shareholders. However, voting rights of Fairfax will be capped at 26 per cent. Fairfax must obtain formal clearances from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI). The deal is targeted to final closure and completion by 31 March 2027.
The real controversy is around selling it cheap. According to reports the bidder saw the price and then they set the price. It has raised questions on the integrity of the bidding process. The matter is of serious concern for another reason too. It has been reported that some other public sector banks are also for sale.
All India Bank Employees Association (AIBEA) has said that every government undertaking in India today is for sale in the name of monetization. Foreign capital is being allowed to enter Indian Banking System and we are afraid, tomorrow it would guide what should be the shape of our Banking and economy. Privatisation of banks is an issue now. By declaring that some more banks are to be privatized apart from IDBI, Government has thrown a challenge to the bank employees and we must as an organization accept the challenge and come downto street to defeat the pernicious policy of privatization of the Government, AIBEA has said.
UFBU has said called for support to IDBI Bank employees and officers in their agitation, giving slogans – Save IDBI Bank, Stop privatization, Stop Foreignisation. They also had participated at Mumbai sit-in protest o 23 October 2026. UFBU has said that IDBI employees and officers struggle is their struggle. UFBI said that selling banks is selling the public savings to foreign investor to the tune of 3.5 lakh crore.
Joint platform of 10 Central Trade Unions has also strongly opposed the dean demanding immediate suspension of the sale of IDBI to Fairfax. They also demanded a probe into alleged irregularities surrounding the bidding, valuation, and decision-making processes, and a parliamentary review to the deal, its impact on public ownership, and how it aligns with past assurances in the parliament regarding IDBI.
“We call upon all affiliated unions and federations to organise demonstrations and solidarity actions across the country, in coordination with the United Forum. Workers across banking, insurance, industry, transport, public services and other sectors must unite to expose the consequences of this policy and resist the subordination of public wealth to corporate interests,” the joint platform of CTUs said.
Leader of opposition Rahul Gandhi has praised the employees and officers of IDBI and said, “Seven years ago IDBI was losing money. Last year, it earned a profit of over nine thousand crore rupees.” He criticized the Union government’s decision to sell it. He asserted that public sector banks are not assets to be sold off, but vital tools to build the country.“During Congress’s time, IDBI was established — to build the nation’s industry. During Modi’s time, first the bidding was seen, then the price was set. During Congress’s time, banks were being created. During Modi’s time, they are being sold,” LoP Rahul Gandhi said. Congress has termed the deal a major “scam” demanding an immediate halt to the transaction and a Joint Parliamentary Committee (JPC) probe.
Union Minister of Finance Nirmala Sitharaman while defending the deal said that their government inherited a severely crippled balance sheet and accused the Congress-led UPA government of using public sector financial institutions as “personal entities”. She alleged that previous administrations pressured bank management to bypass prudent lending norms and extend massive loans to politically connected business groups. Sitharaman cited historical examples of bad loans extended to embattled corporate houses—such as Videocon, Winsome, ABG Shipyard, and Kingfisher. She emphasized financial turnaround during the present government. (IPA Service)
