File photo: People walk past a branch of Idbi Bank in New Delhi, India, April 5, 2023. Reuters/Adnan Abidi/File Photo | Photocredit: Adnan Abidi
The Confederation of All-India Bank Officers (AIBOC) On Wednesday, the switch from the government criticized to privatize the Idbi Bank and said that it would be betrayal of parliamentary guarantees given at the time of its transformation in 2003.
In December 2003, the then Minister of Finance gave a certainty in parliament that the government would at all times maintain a share of at least 51 percent in IDBI Bank.
Privatization of IDBI Bank is not only the sale of shares, it is the sale of people’s savings, the weakening of the public bank network of India and the betrayal of parliamentary guarantees that are given at the time of its transformation, AIBOC said in a statement.
Last week, Dipam Secretary Arunish Chawla said that the sale of Idbi Bank Stake is expected to complete this tax, because the qualified bidders have almost completed their due diligence process.
The government of India and LIC jointly own 95 percent of the Idbi Bank, of which 60.72 percent of which is reserved for sale under the current divestment program.
“Privatization of Idbi Bank is nothing less than privatizing people’s savings. Nation building requires strong public banks, no profitable institutions. Banks in the public sector exist to serve people; private banks exist to make a profit,” said it.
AIBOC urged the Indian government to immediately withdraw the proposal to privatize Idbi Bank.
“Instead, the focus must be on strengthening the administration and accountability, infusing capital through public financial institutions, accelerating digital modernization and expanding the development mandate of IDBI,” said it.
Idbi Bank became a subsidiary of LIC with effect from January 21, 2019, after taking over an additional 82.75.90.885 shares.
On December 19, 2020, Idbi Bank was again classified as an associated company because of the reduction of the LIC share that is at 49.24 percent, after the issue of additional shares by the bank under a qualified institutional placement (QIP).
Published on August 27, 2025
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