Raising concerns over the fate of IDBI Bank’s 20,000 employees, NCP (SP) MP Supriya Sule on Monday questioned the government’s push for privatisation during Zero Hour in the Lok Sabha.
“I stand here to raise the issue of IDBI Bank,” Sule said. “When Jaswant Singh ji was the Finance Minister, he had promised that it would never be privatised and that 51 per cent would remain with our government. And today, we are reading in the newspapers that LIC has taken many shares of IDBI Bank. If those shares are sold in the market, then 61 per cent of IDBI Bank will go into private hands.”
The government’s move to privatise IDBI Bank marks the largest strategic sale in India’s banking and financial services sector. In January 2023, the Department of Investment and Public Asset Management (DIPAM) invited expressions of interest (EOIs) for the sale of 60.72 per cent of the bank—30.48 per cent from the government and 30.24 per cent from LIC.
Among the bidders are Fairfax India Holdings, Emirates NBD, and Kotak Mahindra Bank. With the financial bidding process expected to conclude by May-June, concerns have intensified over the future of IDBI Bank’s employees. “All the officers and 20,000 employees of IDBI are demanding that this privatisation should not happen,” Sule said. “The bank’s NPA has come down drastically, and it is running very well. Why sell it now? The government should let it continue as it is.”
The government is reportedly expecting a premium over the current market price, with the 60.72 per cent stake valued at approximately ₹47,400 crore. Officials believe the deal could be the second-largest in India’s corporate history after Walmart’s $16 billion acquisition of Flipkart. However, the move has triggered widespread protests, particularly from IDBI employees, nearly half of whom belong to reserved categories.
According to data, the bank’s workforce includes 6,000–8,000 employees from SC/ST communities, 4,000 from OBC backgrounds, and 485 physically challenged staff members.
In 2016, Delhi Chief Minister Arvind Kejriwal openly opposed IDBI Bank’s sale, arguing that it should remain in the public sector. That same year, Balbhadra Majhi, a BJP MP from Nabarangpur, had also spoken against privatisation.
In January, the All India IDBI Officers’ Association held demonstrations, including protests at Jantar Mantar, against this move that led to a 9 per cent drop in the bank’s stock price. The association has also sought the support of 25 Members of Parliament across party lines.
With the IDBI sale poised to be the biggest privatisation since Air India, the government has remained tight-lipped about its expected returns.
Meanwhile, Sule’s speech in the Lok Sabha highlighted the opposition’s commitment to ensuring that the issue is not allowed to die down easily in the coming months.
