A two-day nationwide strike by the United Forum of IDBI Officers and Employees to oppose the proposed sale of a majority stake in the lender to Canada-based Fairfax concluded on Tuesday.
The union will decide its future course of action at a meeting on November 10 as it seeks to prevent the stake sale.
"The strike got a massive response from employees and officers across the country. We will decide the future course of action in our core committee meeting post Diwali on November 10 on the way to intensify struggle," United Forum of IDBI Officers & Employees Convener Devidas Tuljapurkar said.
He also said the union would approach the United Forum of Bank Unions (UFBU) to get their support, including giving a nationwide strike call.
"We are seriously concerned that the transaction may undervalue IDBI’s properties, institutional capabilities, customer relationships, future earnings and strategic importance," he said.
The Opposition led by Congress too has raised concerns over the valuation of IDBI Bank. The Congress on Monday alleged that the IDBI Bank disinvestment was a 'scam' and demanded that the sale of the bank to a foreign company be halted and a Joint Parliamentary Committee be constituted to probe the entire process.
Congress general secretary in-charge communications Jairam Ramesh claimed that a foreign company is acquiring IDBI Bank from the government using funds that belong to the bank itself.
"This is yet another major scam by the Modi government, which warrants an investigation. We demand that the process of selling IDBI Bank to a foreign company be halted," Ramesh said in a post on X.
Tuljapurkar further said the government must disclose the valuation methodology, underlying assumptions, treatment of real estate and other assets, and the basis for accepting the sale consideration, he said, adding that the public deserves evidence that a national asset is not being transferred at a throwaway price.
The proposed purchaser’s ownership structure, financial strength, regulatory record and any substantiated controversies in its home jurisdiction must also be subjected to transparent scrutiny, he added.
IDBI Bank has on its rolls 19,108 employees, including 9,500 employees belonging to SC, ST and OBC categories.
It has 6,911 women employees and 884 differently abled employees.
The Central government and LIC hold 45.48 per cent and 49.24 per cent equity shares, respectively, in IDBI Bank.
The government on October 14 approved the sale of a 60.72 per cent stake in IDBI Bank to Canada's Fairfax Financial Holdings for about Rs 53,000 crore (USD 5.5 billion), in what would be the largest foreign investment in an Indian bank and a major milestone in the country's long-delayed banking privatisation drive.
Fairfax will be the strategic buyer of the government's 30.48 per cent stake, valued at about Rs 26,620 crore, and the 30.24 per cent stake held by LIC, valued at about Rs 26,440 crore.
Canadian billionaire Prem Watsa-led Fairfax will pay Rs 81 per share, higher than the benchmark fair value of Rs 75.99 determined by two independent valuation agencies.
The strategic transaction of IDBI Bank is expected to be completed by the end of the current financial year, subject to regulatory clearance from the Reserve Bank of India (RBI).
