The All India Bank Officers’ Association (Aiboa) said it will be forced to resort to agitations, including direct action, together with other trade unions that are active in the banking sector, to stop the government’s sales process and the importance of LIC in IDBI Bank to private or foreign investors.
The government, although the Department of Investment & Public Asset Management (DIPAM), traversed strategic disinvestment in Idbi Bank in October 2022. This brings the sale of the government and the Life Insurance Corporation of India’s (LIC) majority equipment, together with transfer of management control in Idbi Bank.
LIC holds 49.24 percent, while the government has 45.48 percent interest in Idbi Bank. The government and LIC will sell such a number of shares that represents 30.48 percent and 30.24 percent respectively, which merges to 60.72 percent of IDBI Bank’s share capital.
S Nagarajan, Secretary General, Aiboa, said: “We believe that the financial sector – banking and insurance – should be under the control of the Indian government.
“…. foreign investors who take over the Indian banking sector will be related to access to the East India Company … any discomfort for customers because of the agitations to maintain the character of the public sector of Idbi Bank is genuine regret.”
Currently, four entities – Emirates NBD, Fairfax India Holdings (Investor in Catholic Syrian Bank), Kotak Mahindra Bank LTD and Oaktree Capital – are supposed to be in the race for buying majority interests in Idbi Bank.
Published on September 12, 2025
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