The All India Bank Officers’ Association has challenged the proposed sale of government and LIC holdings to Canada-based Fairfax Holdings. The transaction would give the buyer a 60.72% stake and management control. In its letter to DIPAM, the association sought greater transparency before the sale proceeds.

AIBOA General Secretary S Nagarajan questioned the roughly ₹81-a-share price, compared with an earlier expectation of ₹110 this year. The association puts the difference at around ₹17,000 crore and says the lower valuation has not been clearly explained despite the bank’s recent profitability.

Property values are central to its objection. AIBOA estimates that a 50-acre Hyderabad holding could fetch ₹13,450 crore, using recent government auctions as a benchmark. It says the bank’s 2,000 properties could together be worth over ₹30,000 crore, against a book value of about ₹8,880 crore. These are the association’s estimates.

LIC acquired shares for ₹61 each in 2019. AIBOA argues it should receive at least ₹122 after nearly seven years, and considers ₹133 the minimum fair sale price. It wants a public, property-wise list with market valuations and has raised concerns that a buyer could prioritise property disposals over banking growth.

Fairfax’s control of CSB Bank raises another issue because RBI rules generally restrict one owner from controlling two banks. The report mentions a possible two-year resolution window, potentially involving a merger, but does not establish this as an approved arrangement.