IDBI Bank sale to Fairfax faces union resistance, black-badge protest on October 16

Banking and insurance employee unions have opposed the Union Cabinet’s decision to sell a 60.72% stake in IDBI Bank to Fairfax Financial Holdings.

Soon after the Cabinet’s approval, the United Forum of IDBI Bank Officers and Employees opposed the proposed sale and called for a review. “The public deserves evidence that a national asset is not being transferred at a throwaway price,” it said in a statement.

Other unions have also raised concerns about the proposed stake sale. The United Forum of Bank Unions, which says it represents 90% of the banking workforce and comprises seven bank unions, has described the move as not only “privatisation” but also “foreignisation”. The UFBU has asked its members to wear black badges on October 16.

“Government talks about Atmanirbhar but this important bank with huge public savings is being sold to a foreign investor. This is totally unwarranted and undesirable,” it said in a statement.

The All-India Insurance Employees Association (AIIEA) also condemned the decision, noting that IDBI Bank has been consistently profitable and has demonstrated significant improvement across key financial and operational parameters.

Both the UFBU and the AIIEA also pointed out that the government had earlier assured Parliament that it would continue to hold at least 51% equity in IDBI Bank.

Under the proposed strategic restructuring of IDBI Bank, Fairfax Financial Holdings will acquire a 60.72% stake in the bank, comprising the Government of India’s 30.48% equity shareholding and the 30.42% stake held by the Life Insurance Corporation of India.

Officials had underlined that IDBI Bank employees need not worry about the change in management, as the government and LIC will continue to hold a combined stake of more than 30% in the lender. They also pointed out that IDBI Bank is board-managed and differs from a public sector bank.
“Over the last one year, there have been continuous discussions with IDBI stakeholders and concerns of every group have been addressed,” they said.