AIBOC opposes Centre's plan to privatise IDBI Bank, warns of social risks

Bank officers' union AIBOC has opposed the Centre's plan to privatise IDBI Bank, saying it endangers public trust, social justice and economic sovereignty while risking financial exclusion

The All-India Bank Officers’ Confederation (AIBOC) has come out strongly against the Centre’s plan to privatise IDBI Bank, warning that such a step would undermine social justice, financial inclusion and the country’s economic sovereignty.

 

Rupam Roy, general secretary of AIBOC, said the government’s proposal was a betrayal of public trust. “IDBI was created in 1964 with taxpayers’ money and nurtured over decades as a development institution. Handing it over to private or foreign profiteers is nothing less than an assault on national sovereignty and social justice,” he said.

 

In a press statement AIBOC emphasised that privatisation would not merely be a transfer of shares, but a direct blow to the foundation of India’s public banking system. “Privatisation of IDBI Bank is not just the sale of shares, it is the sale of people’s savings and the weakening of our public banking network. It also violates the assurances given in Parliament that government ownership would not fall below 51 per cent,” the statement said.

   

The union also highlighted the risks to vulnerable communities. “As a public sector bank, IDBI has delivered credit to farmers, small businesses, women, rural households and marginalised communities. A private bank driven solely by profits will not prioritise these groups, leading to exclusion and financial alienation,” Roy cautioned.

 

Calling the move inconsistent with India’s self-reliance agenda, AIBOC said, “True nationalism lies in protecting people’s savings and strengthening public institutions, not selling them off to private or foreign hands.”

 

AIBOC urged the government to withdraw the privatisation plan and instead focus on reforms to strengthen IDBI’s governance, accelerate digital modernisation and expand its developmental mandate.

 

“Privatisation is not reform, it is retreat. We appeal to Members of Parliament, policymakers, civil society and the people of India to stand together in defence of IDBI Bank — a people’s bank built on public trust,” Roy said.

 

Last week, Department of Investment and Public Asset Management (Dipam) secretary Arunish Chawla said that the government expects to complete the “core part” of IDBI Bank Ltd’s privatisation by March 31, 2026. Qualified bidders have begun due diligence and will finish the exercise by September, he added.

 

“The expression of interest process has been completed. The parties which cleared all the technical parameters and are qualified are undertaking the due diligence exercise. All the required documents have been made available to them. We hope to complete the basics with the core part of the process by the end of the current financial year,” said Chawla.

 

The Centre and Life Insurance Corporation of India together hold 95 per cent stake in IDBI, of which 60.72 per cent is on the block. This could fetch the government Rs 64,000 crore at current market rate.