15/03/2026
To
The Hon’ble Finance Minister,
Government of India,
North Block, New Delhi – 110001.
Subject: Strong Opposition to the Proposed Privatisation of IDBI Bank.
Respected Madam,
On behalf of the All India Bank Employees' Unity Forum (AIBEUF), representing bank employees and concerned citizens across the country, we express our strongest opposition to the move of the Government of India to privatise IDBI Bank.
We submit the following points for your urgent kind consideration:
1-Public Sector Institutions Are Built with People’s Money
Public Sector Banks like IDBI Bank have been built over decades with the savings of crores of common people and the hard labour of bank employees. Handing over such public assets to private monopoly houses — domestic or foreign — amounts to transferring public wealth into private hands. This goes against the basic spirit of economic democracy and the welfare orientation of our Constitution.
2- Huge Public Stake and Responsibility
At present IDBI Bank has:
Deposits of more than ₹3.10 lakh crore
Business exceeding ₹5.3 lakh crore
Advances above ₹2.18 lakh crore
Money control
Crores of depositors have entrusted their savings to this bank. Privatization will expose their interests to the speculative motives of private capital.
History has repeatedly shown that when banks were under private ownership before nationalisation, frequent bank failures occurred and depositors lost their savings. The nationalisation of banks was undertaken precisely to prevent such crises.
3. The Bank Is Now Strong and Profitable
The argument that public sector banks are inefficient is completely contradicted by the present performance of IDBI Bank.
Recent financial performance shows:
Net Profit FY2024-25: ₹7,515 crore
Operating Profit FY2024-25: ₹11,079 crore
Gross NPA: Reduced to about 2.98%
Provision Coverage Ratio: about 99.48%
These figures clearly show that the bank has turned around and is now a profitable and financially sound institution.
Under such circumstances, the decision to privatise it, raises a serious question: Why should a profitable public institution be handed over to private monopoly houses?
4. Violation of Parliamentary Assurance
When the IDBI (Transfer of Undertaking and Repeal) Act, 2003 was enacted repealing the earlier Industrial Development Bank of India Act, 1964, the Government assured Parliament that its shareholding in the bank would not fall below 51%.
The current move to privatise the bank contradicts that solemn assurance given to the Parliament and the people of India.
5. Public Sector Banks Are Instruments of Social Development
Public sector banks have played a historic role in:
Rural credit expansion,
Agricultural finance,
Priority sector lending,
Financial inclusion through schemes like Pradhan Mantri Jan Dhan Yojana.
Private banks generally avoid such responsibilities and concentrate mainly on profit-oriented urban lending.
Privatisation of IDBI Bank will weaken the country’s capacity to implement social banking policies.
6. Threat to Employment and Labour Rights
Experience worldwide shows that privatisation leads to:
Downsizing of workforce,
Contractualisation of jobs,
Closure of rural branches.
Thousands of employees and their families will face uncertainty if the bank is privatised.
7. Strategic Financial Institutions Must Remain Public
Banking is not an ordinary business. It is the backbone of the national economy and must remain under public control to safeguard economic stability and national development.
In view of the above facts and considerations, we earnestly urge the Government of India to:
Immediately halt the move to privatise IDBI Bank and retain it as a strong public sector institution serving the people of India.
