Officers and employees of IDBI Bank will hold a one-day nationwide hunger strike on July 27 to protest the proposed privatisation of the lender, with the strategic sale expected to be completed by the end of August, news organization BusinessLine reported on Saturday. The protest has been reportedly called by the United Forum of IDBI Officers and Employees, which has raised concerns over job security, social security benefits, reservation policies, public accountability and the future of the bank’s developmental role.
The proposed privatisation is being pursued through the Department of Investment and Public Asset Management (DIPAM).
Employees cite bank’s six-year turnaround
Employee representatives reportedly said the proposed sale comes at a time when IDBI Bank has recorded consistent profitability and shown significant improvement in its financial and operational performance over the past six years. They argued that the bank’s turnaround raises questions over the need to privatise it at a time when its performance has improved significantly.
“At this juncture of sustained turnaround, the move towards privatisation has caused deep concern among employees with respect to job and social security benefits, including pension,” BusinessLine quoted forum leaders as saying.
Concerns over future of 884 differently-abled employees
The forum has also expressed concern over the future of 884 differently-abled employees working at the bank. Currently, IDBI Bank has 3,070 Scheduled Caste employees, 1,214 Scheduled Tribe employees, 5,604 Other Backward Class employees and 805 employees belonging to the Economically Weaker Sections.
According to the employees’ forum, a change in ownership could take the bank outside the reservation framework applicable to public sector institutions, potentially affecting the representation of disadvantaged communities in employment.
Privatisation may dilute public oversight, employees say
According to BusinessLine, the forum argued that privatisation could take IDBI Bank outside the scope of several statutory and parliamentary oversight mechanisms. These include the Right to Information Act, Central Vigilance Commission oversight and parliamentary scrutiny, which employee representatives say could weaken transparency and public accountability.
The bank currently serves more than two crore customers through a network of 2,193 branches. It has a deposit base of more than Rs 3.47 lakh crore, including approximately Rs 1.55 lakh crore in low-cost deposits, according to the forum.
Employees highlight bank’s financial inclusion role
The United Forum has also pointed to IDBI Bank’s role in implementing government-backed financial inclusion and social security programmes. The bank has 18.72 lakh accounts under the Pradhan Mantri Jan Dhan Yojana, 10.86 lakh enrolments under the Pradhan Mantri Suraksha Bima Yojana, 3.81 lakh enrolments under the Pradhan Mantri Jeevan Jyoti Bima Yojana and 5.48 lakh subscribers under the Atal Pension Yojana.
The bank also operates as many as 191 Aadhaar Enrolment Centres and a Rural Self Employment Training Institute (RSETI), supporting financial access and skill development.
The forum has expressed apprehension that privatisation could shift the bank’s focus away from social banking and financial inclusion towards a more profit-driven model.
Employees flag Rs 30,000 crore real estate assets
The report also revealed IDBI Bank’s real estate holdings across more than 21 prime locations, which it estimates to be worth over Rs 30,000 crore. Employee representatives have raised concerns over the valuation and potential transfer of these assets as part of the proposed strategic sale.
Foreign ownership concerns
The proposed transaction has also triggered concerns over the possibility of foreign ownership of IDBI Bank. The forum has argued that if the strategic sale goes through, the lender could become the first public sector bank to be transferred to foreign ownership, raising questions over the government’s stated emphasis on Atmanirbhar Bharat and economic self-reliance.
The forum also pointed to previous instances of Indian banks coming under foreign ownership or control, including Lakshmi Vilas Bank’s takeover by DBS, Catholic Syrian Bank’s acquisition by Fairfax and Emirates NBD’s investment in RBL Bank. YES Bank is also in the process of being taken over by Japan’s SMBC Group.
Forum appeals to political parties, RSS and Swadeshi Jagran Manch
The United Forum has appealed to political parties, Members of Parliament, the Leader of Opposition, central trade unions, banking organisations, economists, academicians and citizens to intervene and urge the Centre to reconsider the proposed privatisation.
The employees’ body said the move was contrary to assurances given to Parliament and could have implications for the country’s economic sovereignty. The forum also said it was reaching out to RSS chief Mohan Bhagwat and the Swadeshi Jagran Manch to urge the Centre to reconsider the proposed sale.
IDBI Bank Q1
On Saturday, IDBI Bank reported a 5% rise in net profit at Rs 2,115 crore for the first quarter of the current financial year. The LIC-controlled bank had earned a net profit of Rs 2,007 crore in the same quarter of the previous fiscal year.
According to news agency PTI, the total income rose to Rs 8,573 crore during the June quarter of 2026-27, from Rs 8,458 crore a year ago, IDBI Bank said in a regulatory filing.
Interest earned by the bank improved to Rs 7,541 crore, as compared to Rs 7,021 crore in the June quarter of FY26. Net Interest Income (NII) also increased to Rs 3,486 crore in the quarter, against Rs 3,166 crore in Q1 of the previous year, an increase of 10%.
However, a year ago, the bank’s operating profit declined to Rs 2,168 crore, from Rs 2,354 crore.
