IDBI Bank Unions Oppose Fairfax Takeover, Call Nov 2-3 Strike

Staff unions at IDBI Bank have called a two-day nationwide strike on November 2 and 3 to protest the government's plan to privatise the lender. The agitation, which involves more than 10,000 employees, is being coordinated by the United Forum of IDBI Officers and Employees.

The forum has asked the central government and bank management to withdraw the privatisation proposal. It argues that the bank's recovery is the product of collective action by the government, LIC, and employees, and not a result of private capital.

The union said employees remained committed to customers and kept core banking services running during a period of acute financial stress. It added that their contribution was central to rebuilding the institution, alongside the financial assistance extended by the government and LIC for restructuring.

The bank's difficulties date back to the 2016 to 2020 period, when the Reserve Bank of India's asset quality review led to the identification of large volumes of non-performing assets. Heavy losses followed. The union notes that the government and LIC provided over Rs 46,000 crore in capital support to help the bank regain stability.

According to the union, the bank has since shown substantial improvement. It cites cumulative net profit of over Rs 30,100 crore in the last six years and a decline in the gross NPA ratio from 31.78 per cent in 2018 to 2.30 per cent. The net NPA ratio is reported at 0.16 per cent.

Additional indicators cited by the union include a capital adequacy ratio of 26.38 per cent and a provision coverage ratio of 99.31 per cent. The organisation argues that these figures demonstrate the bank's strengthened balance sheet.

The government, however, is moving toward transferring control of IDBI Bank to Canada's Fairfax Group. The employees' body has consistently opposed the proposal, raised doubts over the bank's proposed valuation, and expressed concern about transparency in the disinvestment process.