New Delhi, November 1: Opposition to the privatisation of IDBI Bank escalated on Sunday as the Joint Platform of Central Trade Unions demanded an immediate suspension of the disinvestment process, an independent, time-bound investigation into the bidding, valuation and decision-making process, and parliamentary scrutiny of the transaction, The Hindu BusinessLine reported.

Source: The Hindu BusinessLine

The platform of 10 central trade unions extended full support to the two-day strike and hunger strike called by the United Forum of IDBI Officers and Employees on November 2 and 3 to demand cancellation of the privatisation. More than 10,000 employees across over 2,000 branches are expected to take part, Daily Kiran reported, and the United Forum of Bank Unions has also announced its support.

Source: Daily Kiran

60.72%Stake approved for sale to Fairfax parent 10955230 Canada Inc.
10,000+IDBI officers and employees expected to strike on Nov 2–3
2,000+Branches whose staff are set to join the strike
₹52,878 croreReported value of the stake sale

The strike follows the development reported earlier in this sale process: on October 14, the Cabinet Committee on Economic Affairs approved 10955230 Canada Inc., the parent entity of Fairfax Financial Holdings Ltd., as the strategic buyer of an aggregate 60.72 per cent stake in IDBI Bank — 30.48 per cent held by the Government of India and 30.24 per cent held by LIC. The unions want that process withdrawn and government majority ownership retained.

The employees' forum argues, as a claim, that IDBI Bank's turnaround was achieved by the government, LIC and employees rather than private investment, pointing to cumulative net profit of over ₹30,100 crore in the last six years, a net NPA ratio of 0.16 per cent, capital adequacy of 26.38 per cent and a provision coverage ratio of 99.31 per cent. IDBI Bank, in its customer advisory and stock-exchange filing, has said digital channels including Go Mobile+, net banking and UPI, along with ATMs, will stay operational on both strike days, withdrawals from non-IDBI ATMs will be free, though branch counter services may be disrupted.

Source: FinanceChecks (bank advisory and exchange filing)

What happens next: the strike runs through Monday and Tuesday, November 2 and 3. Whether the government engages the unions, or the disinvestment proceeds on schedule toward the Fairfax transaction, will decide if the agitation widens into the broader banking sector, where the United Forum of Bank Unions has already pledged solidarity action.