New Delhi — The United Forum of IDBI Officers and Employees (UFIOE) staged a dharna at Jantar Mantar today during the ongoing Monsoon Session of Parliament, voicing strong opposition to the Centre’s strategic disinvestment of IDBI Bank. The forum urged the government to halt the privatization process and retain majority public ownership in the bank.

UFIOE members have also recently met with over 40 Members of Parliament from across party lines — including senior leaders like Shri Rahul Gandhi, Shri K.C. Venugopal, Shri Bhartruhari Mahtab, Dr. M. Thambidurai, and others — to submit a detailed memorandum and request their intervention.

A Profitable Public Sector Bank at Risk

IDBI Bank, according to the forum, has posted consistent profits over the last five financial years, reaching ₹7,515 crore in FY 2024-25. The gross and net NPAs have reduced to historically low levels of 2.93% and 0.21%, respectively, with a provision coverage ratio of 99.31%.

"Despite such stellar performance, there is no justification for selling off this profit-making public sector bank to private — possibly foreign — entities like Emirates NBD (Dubai) and Fairfax Financial (Canada)," the UFIOE stated in its release.

Violation of Past Assurances

The unions highlighted that the then Finance Minister Shri Jaswant Singh had assured both houses of Parliament in December 2003 that the Government would retain a minimum 51% stake in IDBI Bank. Today, however, the Government holds 45.48% while LIC owns 49.24%. The proposed disinvestment of 60.72% (30.48% from the Centre and 30.24% from LIC) will result in the bank moving into private hands.

“This not only breaches past assurances but threatens the bank’s character as a social and developmental financial institution,” the forum said.

Social Impact and Concerns Over Asset Stripping

UFIOE warned that the new owners may prioritize profits over public service, risking essential services for farmers, small traders, and rural communities. The forum also raised red flags about potential misuse of IDBI Bank’s vast real estate assets — including a 50-acre land parcel in Hyderabad.

Currently, the bank serves over 2 crore depositors, including 18.72 lakh Jan Dhan accounts, and operates 2,108 branches across India.

Impact on Marginalized Employees and Legal Protections

The union noted that IDBI Bank’s current workforce includes significant representation from marginalized communities — SC (2,923), ST (1,156), OBC (5,415), EWS (675), and differently abled (884), as well as 6,911 female employees.

Privatization, they said, could compromise the service conditions and pension protections guaranteed under Section 5(1) of the IDBI (Transfer of Undertaking and Repeal) Act, 2003.

Demands to the Government

The forum made the following key demands:

• Reacquire 6% equity from the market or LIC to restore 51% government ownership.

• Direct the RBI to treat IDBI Bank as a Public Sector Bank, as the Government and LIC together still hold 95% of shares.

• Reinstate IDBI Bank’s Development Financial Institution (DFI) status to support long-term industrial and infrastructure growth.

Looking Ahead

UFIOE is seeking meetings with the Hon’ble Finance Minister and the Hon’ble Prime Minister to present its case. "Privatization of IDBI Bank is not just an economic decision; it is a matter of national interest involving social justice, employment, and public trust," said UFIOE Convenor Devidas Tuljapurkar.

The forum vowed to continue its democratic struggle until the government reconsiders the disinvestment decision.