The All India Bank Officers’ Association (AIBOA) is demanding an urgent 'mid-course correction' (a change in the middle of a process) regarding the sale of IDBI Bank. The union has written to the Department of Investment and Public Asset Management (DIPAM) to voice their concerns. They believe the current plan to sell the government and LIC's stake to Canada-based Fairfax Holdings is being done at a price that is far too low.

At the heart of the issue is the share price. The government is planning to sell its stake at roughly ₹81 per share. However, AIBOA General Secretary S Nagarajan pointed out that the expected price was ₹110 earlier this year. This drop in price creates a gap of about ₹17,000 crore. The union argues that there is no clear explanation for why the bank is now being valued so much lower, especially since the bank has been making good profits lately.

The union’s biggest objection involves IDBI Bank’s land and buildings. They claim the 'enterprise value' (the total value of the company) does not include the true market price of the bank's real estate. For example, the bank owns 50 acres of land in Hyderabad. Based on recent government auctions, this single property could be worth ₹13,450 crore. If all 2,000 properties owned by the bank were valued at current market rates, the total could exceed ₹30,000 crore. Currently, the bank’s books show these assets at a much lower value of around ₹8,880 crore.

There is also a concern regarding LIC, which is a major shareholder. LIC bought its shares at ₹61 back in 2019. The union argues that after nearly seven years, LIC should get at least double its investment, or ₹122 per share. Selling for just ₹81 would be a loss for LIC and its millions of policyholders. The union suspects that a private buyer might be more interested in selling off these expensive properties for a profit rather than growing the actual banking business.

For bank officers and staff, this deal is critical because the buyer would get 60.72% ownership and full management control. AIBOA is worried about the lack of transparency in how the government decided on the ₹81 price. They have asked the government to list every property the bank owns, along with its market value, on a public website before the sale moves forward. They believe a fair price should be at least ₹133 per share.

Another complication involves the potential buyer, Fairfax Holdings. Fairfax already controls CSB Bank. According to RBI rules, one owner usually cannot control two different banks. There are reports that Fairfax might get two years to fix this, perhaps by merging CSB Bank with IDBI Bank. Bankers should watch closely to see if the government pauses the sale to re-evaluate these assets or if they push ahead with the current valuation despite the union's protests.