IDBI Bank Strike On November 2, 3: Over 10,000 Employees To Protest Fairfax Deal

IDBI Bank's proposed privatisation is facing renewed resistance from its workforce, with more than 10,000 employees scheduled to join a nationwide strike on November 2 and 3. The protest, organised by the United Forum of IDBI Officers & Employees, is aimed at pressing the government to withdraw its plan to transfer control of the lender to Canada's Fairfax Group.

The employees' body is challenging the rationale for the sale, arguing that the bank's recovery was built on public financial support and the work of its staff. It has also questioned the valuation being considered for the lender and called for greater transparency in the process.

The forum has pointed to IDBI Bank's financial performance over recent years to make its case against privatisation. According to the union, the bank has generated more than Rs 30,100 crore in cumulative net profits over the past six years, while its asset quality has improved significantly.

The gross non-performing asset (NPA) ratio, which stood at 31.78 per cent in 2018, has fallen to 2.30 per cent. The lender's net NPA ratio is at 0.16 per cent, while its capital adequacy ratio stands at 26.38 per cent and provision coverage ratio at 99.31 per cent.

The union said these gains reflect the efforts made by employees to retain customers, sustain banking operations and restore confidence in the institution. Also Read : Dalal Street Celebrates As US Pushes For Iran Diplomacy: Sensex 700 Points Up, Nifty At 23,250 IDBI Bank's difficult period between 2016 and 2020 followed the recognition of stressed assets under the Reserve Bank of India's Asset Quality Review exercise.

The bank incurred significant losses during those years. In its statement, the forum said the government and Life Insurance Corporation of India (LIC) infused more than Rs 46,000 crore into the lender to help it recover.

The employees' body maintains that this public investment, along with staff commitment, was central to the turnaround. It has therefore urged the government and IDBI Bank management to discontinue the privatisation exercise rather than transfer ownership to a private entity.

The government's plan to transfer control of IDBI Bank to Fairfax Group has drawn strong opposition from employee unions, despite the lender's improved financial indicators. The United Forum has described the proposed valuation as inadequate and raised concerns about how transparently the sale is being conducted.

It argues that the bank's improved health should be viewed in the context of the public funds and employee efforts that supported its recovery. The two-day strike on November 2 and 3 is the latest step in the forum's campaign against the proposed privatisation.

Employees are striking to protest the proposed privatization of IDBI Bank and the transfer of its control to Canada's Fairfax Group. They want the government to withdraw the sale plan. Employees argue the bank's recovery is due to public financial support and staff efforts.

They also question the proposed valuation and demand more transparency in the sale process. IDBI Bank recorded over Rs 30,100 crore in net profits over six years. Its gross NPA ratio dropped from 31.78% in 2018 to 2.30%, showing significant improvement in asset quality.

The government and LIC infused over Rs 46,000 crore into IDBI Bank between 2016 and 2020. Employees assert this public investment was crucial to the bank's turnaround. Sakshi Arora is Chief Copy Editor at ABP Live English, working on business stories that track markets, global economies and key financial trends.

A quick and dependable hand on the desk, she balances numbers with nuance, and is an expert on everything Personal Finance, Mutual Funds, and IPOs. For any tips and queries, you can reach out to her at sakshia@abpnetwork.com.