IDBI Bank employees stage nationwide strike against proposed privatisation

GUWAHATI: Employees and officers of IDBI Bank staged a two-day nationwide strike on November 2 and 3 to protest against the proposed privatisation of the bank. More than 10,000 employees participated in the agitation across over 2,000 branches, according to the United Forum of IDBI Officers and Employees (UFIOE).

The forum demanded the cancellation of the proposed disinvestment and called for discussions on strengthening the bank while safeguarding public investment and employees' interests. It also questioned the proposed transfer of control to Canada-based Fairfax Group, raising concerns over the valuation of the bank and the transparency of the sale process.

UFIOE said IDBI Bank's financial revival had followed substantial public investment and the efforts of its employees. It stated that the bank had incurred losses between 2016 and 2020 after the Reserve Bank of India's Asset Quality Review exposed stressed assets. The Centre and the Life Insurance Corporation of India had subsequently infused more than Rs 46,000 crore into the bank.

The forum said employees had played a significant role in retaining customers, maintaining operations and restoring confidence in the institution. It cited the bank's cumulative net profit of Rs 30,106.43 crore over six years, a reduction in gross non-performing assets from 31.78 per cent in 2018 to 2.30 per cent, and net NPAs of 0.16 per cent. It also highlighted a capital adequacy ratio of 26.38 per cent and a provision coverage ratio of 99.31 per cent.

UFIOE alleged that the proposed sale price did not adequately reflect the bank's financial recovery and raised concerns over the lack of transparency in the disinvestment process. It demanded public disclosure of the relevant details and an independent examination of the proposed transaction.

The United Forum of Bank Unions had also urged employees of other banks to wear badges and participate in demonstrations in solidarity with the IDBI Bank workforce. UFIOE warned that it would intensify its agitation if the government failed to address its demands, a press release said.

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