The All India IDBI Officers’ Association (AIIOA) has urged Finance Minister Nirmala Sitharaman to “uphold the national interest” and consider a merger of IDBI Bank with any public sector bank to protect the interests of depositors, small borrowers and employees.
This follows similar requests made earlier to the MD and CEO of IDBI Bank and Secretary, Financial Services Department, Ministry of Finance, said Vithal Koteswara Rao AV, General Secretary, AIIOA.
In a letter to the Finance Minister, Rao said the proposed sale by the Center and India’s LIC to private or foreign entities is against the interests of depositors and MSME borrowers and over 20,000 employees of the bank.
He recalled the then Finance Minister Jaswant Singh’s assurance in the Lok Sabha and Rajya Sabha in December 2003 that the government would at all times retain not less than 51 per cent stake in IDBI as a banking company..
Certainties given
This was laid down by the Government Committee on Assurances and formed the basis for the passage of the IDBI (Transfer of Undertaking and Repeal) Act, 2002, by repealing the IDBI Act, 1964. In terms of the Repeal Act, 2003, the business of IDBI was transferred and vested in IDBI Ltd with effect from October 1, 2004.
Based on the then Finance Minister’s assurance, the Reserve Bank of India in 2005 categorized IDBI Ltd under a new sub-group: ‘Other Public Sector Banks’.
Consistent wins
Rao pointed out that the bank has earned net profit i.e. ₹1,359 crore in 2020-21 in the last five years; ₹2,439 crore in 2021-22; ₹3,645 crore in 2022-23; ₹5,634 crore in 2023-2024; and ₹7,515 crore in 2024-25. “This demonstrates the dedication and commitment of a vibrant and young workforce to the organizational goals and growth path.”
As at March 31, the employee and employee profile showed a representation of SCs (2,923); STs (1,156); OBCs (5,415); EWSs (675); female (6,911); and the differently abled (884). These underprivileged sections of society could become victims of privatization.
The guarantees enshrined in Section 5(1) of the IDBI (Transfer of Undertaking and Withdrawal) Act, 2003 regarding continued protection of terms and conditions of service, including pension and superannuation benefits, would also be jeopardized.
Published on October 28, 2025
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