The All India Bank Officers' Association (AIBOA) has appealed to the President of India to intervene in the proposed divestment of IDBI Bank, contending the Centre's decision to sell a 30 per cent stake along with an equal stake held by Life Insurance Corporation of India (LIC) to a foreign investor runs contrary to assurances given in Parliament. According to reports from The Hindu BusinessLine, AIBOA General Secretary S. Nagarajan addressed the President as the 'Custodian' of public sector financial institutions and public sector undertakings, seeking intervention to safeguard institutions created and nurtured in the public interest.
As reported by The Hindu BusinessLine, Nagarajan contended that the proposed sale would dilute public ownership in a key financial institution despite the Government's assurance in Parliament in December 2003 that it would retain at least a 51 per cent equity stake in the then Industrial Development Bank of India at all times. This assurance was subsequently recorded by the Parliamentary Committee on Government Assurances, making the current divestment proposal a significant departure from the stated policy.
According to AIBOA's analysis reported by The Hindu BusinessLine, IDBI Bank reported total business of ₹5.85 lakh crore as on June 30, 2026, comprising deposits of ₹3.26 lakh crore and advances of ₹2.59 lakh crore. The association highlighted that the loan coverage ratio is close to 100 per cent. Regarding valuation concerns, Nagarajan questioned the current market price of around ₹84.50 per share, arguing that LIC's investment at an average price of ₹61 per share in January 2019 should have realised at least ₹122 per share based on the holding period of about seven-and-a-half years.
As reported by The Hindu BusinessLine, AIBOA highlighted that IDBI Bank owns about 50 acres of land allotted by the erstwhile Andhra Pradesh Government in 1989 at a concessional rate, where its International Training Institute is located. The association stated that the bank's book value of immovable assets is around ₹40,000 crore. The association expressed concern that permitting a foreign investor to acquire a controlling stake could pave the way for similar investments in other public sector banks in which LIC has infused capital, potentially affecting employee constitutional protections and service benefits.
