The All India Bank Officers’ Association (AIBOA) has officially reached out to the President of India to stop the sale of IDBI Bank. The union is worried that the government is selling a 30% stake, while the Life Insurance Corporation of India (LIC) is also selling a 30% stake. Together, this 60% stake would go to a foreign buyer, which means the government would lose control of the bank. The AIBOA General Secretary, S. Nagarajan, argues that this move goes against a specific promise made in Parliament back in 2003. At that time, the government assured that it would always keep at least 51% ownership (majority control) in the bank.

The union has named the President as the 'Custodian' of public sector institutions to seek help. They believe that selling the bank to a foreign entity like Canada’s Fairfax India Holdings would harm the public interest. IDBI Bank started in 1964 to help Indian industries grow by giving long-term loans. Over the years, it became a universal bank (a bank that offers both retail and investment services). It even helped the government by taking over the struggling United Western Bank in the past. Now, the union feels the bank is being sold off too cheaply after its hard work.

There are serious concerns about the price of the sale. AIBOA claims that the government lowered the 'reserve price' (the minimum price set for a sale) because foreign bidders did not want to pay the original amount. The union pointed out that LIC bought its shares at an average price of ₹61 in 2019. If we look at the time passed, the shares should be worth at least ₹122 now, but the current market price is only around ₹84.50. This suggests that the bank is being undervalued, which could lead to a loss for the public exchequer.

IDBI Bank is currently in a very strong financial position, making the sale even more controversial. As of June 30, 2024, the bank had a total business of ₹5.85 lakh crore. This includes deposits of ₹3.26 lakh crore and advances (loans) of ₹2.59 lakh crore. The bank also has massive physical assets, including 50 acres of land in Andhra Pradesh and other buildings. The union says the total value of these immovable assets (property that cannot be moved) is about ₹40,000 crore, which might not be fully reflected in the sale price.

For bank employees and aspirants, this news is very important. The AIBOA fears that if a foreign investor takes over, staff will lose their 'constitutional protections' (rights given to government employees). They gave the example of CSB Bank, where workers have reportedly not seen a wage revision (salary hike) for ten years after it was privatized. There is also a fear that if IDBI is sold, the government might start selling other public sector banks where LIC has put in money. This could change the entire banking career landscape in India from a secure government sector to a profit-driven private sector.

As of now, the union is waiting for a response from the President's office. Bankers should watch for updates on the bidding process and whether the government addresses the 2003 parliamentary assurance. If the sale goes through, it will be the first major instance of a foreign investor getting a controlling stake in a large Indian public-sector-turned-commercial bank. This move could set a new standard for how other banks are handled in the future.