IDBI Bank Strike: What's on November 10? Nationwide bank strike, wider protests on the table; here's what you need to know

A two-day nationwide strike by IDBI Bank officers and employees against the proposed sale of a majority stake in the lender to Canada's Fairfax Financial Holdings ended on Tuesday. The employees' union will decide its next course of action at a meeting on November 10 as it continues to oppose the disinvestment. The strike was called by the United Forum of IDBI Officers and Employees, which is seeking to stop the proposed transaction. The union said the protest received a strong response from employees and officers across the country.

"The strike got a massive response from employees and officers across the country. We will decide the future course of action in our core committee meeting post Diwali on November 10 on the way to intensify struggle," United Forum of IDBI Officers and Employees convener Devidas Tuljapurkar said.

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He added that the union would approach the United Forum of Bank Unions (UFBU) to seek wider support, including the possibility of a nationwide bank strike.

IDBI Bank employees oppose proposed stake sale to Fairfax

The union has raised concerns about the valuation of the lender and the possibility of its assets and business capabilities being undervalued in the transaction.

"We are seriously concerned that the transaction may undervalue IDBI’s properties, institutional capabilities, customer relationships, future earnings and strategic importance," Tuljapurkar said.

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He also called on the government to make the valuation process more transparent. The union wants the government to disclose the valuation methodology, the assumptions used, how real estate and other assets have been assessed, and the reasons for accepting the proposed sale price.

Tuljapurkar said the public should have clear evidence that a national asset was not being transferred at a throwaway price. He also called for scrutiny of the proposed buyer's ownership structure, financial position, regulatory record and any substantiated controversies in its home jurisdiction.

Congress calls IDBI Bank disinvestment a 'scam'

The proposed sale has also drawn criticism from the Opposition. The Congress on Monday described the IDBI Bank disinvestment as a 'scam' and demanded that the government stop the sale to a foreign company and set up a Joint Parliamentary Committee (JPC) to investigate the process.

Congress general secretary in-charge of communications Jairam Ramesh alleged that a foreign company was acquiring the lender using funds belonging to the bank itself.

"This is yet another major scam by the Modi government, which warrants an investigation. We demand that the process of selling IDBI Bank to a foreign company be halted," Ramesh said in a post on X.

IDBI Bank stake sale: Government, LIC to sell 60.72% stake

The Central government on October 14 approved the sale of a combined 60.72% stake in IDBI Bank to Fairfax Financial Holdings for around Rs 53,000 crore (USD 5.5 billion).

Under the proposed transaction, Fairfax will acquire the government's 30.48% stake, valued at around Rs 26,620 crore, and LIC's 30.24% holding, worth approximately Rs 26,440 crore.

The Canadian billionaire Prem Watsa-led Fairfax will pay Rs 81 per share, above the benchmark fair value of Rs 75.99 determined by two independent valuation agencies.

The deal, if completed, would mark one of the largest foreign investments in an Indian bank and a major step in the country's long-delayed banking privatisation programme.

The Central government currently holds 45.48% of IDBI Bank, while LIC owns 49.24%. The transaction is expected to be completed by the end of the current financial year, subject to regulatory clearance from the Reserve Bank of India (RBI).

How many employees does IDBI Bank have?

IDBI Bank has 19,108 employees on its rolls, including 9,500 employees from Scheduled Caste, Scheduled Tribe and Other Backward Classes categories.

The lender also has 6,911 women employees and 884 employees with disabilities. The proposed stake sale has therefore become a major concern for the employees' union, which is seeking clarity on the transaction and its implications.


Inputs from PTI