The All-India Bank Officers’ Association has raised its objections through a letter from general secretary S. Nagarajan to the insurance regulator. Its concern is whether LIC would receive an adequate return on its investment, rather than simply sell above its purchase price.

In 2018, IRDAI allowed LIC to acquire a 51% holding in IDBI Bank under special approval. That permission included safeguards for policyholders and a requirement that returns from the investment should be comparable with those from LIC’s other business investments.

LIC holds more than 529 crore IDBI Bank shares. AIBOA puts the average acquisition cost at roughly ₹61 a share. Against this, news reports have indicated a possible sale price of about ₹82 for the holdings of LIC and the government. The association considers that return inadequate after a holding period approaching eight years.

Nagarajan has argued that an undervalued sale could hurt LIC financially and potentially reduce future policyholder bonuses. AIBOA also wants IDBI Bank to remain under government control, saying the regulator should consider the institution’s wider importance rather than view the transaction only as a share sale.

The report does not state any response from IRDAI or a confirmed transaction price. The association’s request therefore remains a demand for regulatory intervention, not an announced halt to the sale.