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United Forum of IDBI Officers and Employees have urged the Centre revisit decision to sell IDBI Bank, and explore alternative models that retain national ownership, protect public interest, and align with principles of self-reliance and economic stability.
United Forum’s plea comes in the wake of the Reserve Bank of India (RBI) confirming on May 19 that it has granted in-principle approval to Emirates NBD Bank PJSC (Public Joint Stock Company) to establish a wholly owned subsidiary in India. The Dubai-based bank currently operates through three branches located in Chennai, Gurugram, and Mumbai.
Strategic sale of bank
Emirates NBD Bank PJSC is reportedly the same entity that has expressed interest in strategic sale of IDBI Bank, said Devidas Tujapurkar, Ratnakar Wankhade, and Vithal Koteshwara Rao AV, representatives of United Forum. The centre’s move mirrors path taken by DBS Singapore in acquiring Lakshmi Vilas Bank, setting a precedent in private sector banking transactions.
First public sector bank
What distinguishes IDBI Bank case is its status as ‘first public sector bank’ being prepared for privatisation. Although the RBI has classified IDBI Bank as a private sector bank for regulatory purposes on January 21, 2019, the Centre still regards it as a public sector institution, the United Forum said. Accordingly, DIPAM was tasked with overseeing its disinvestment.
The move should be seen within the context of IDBI Bank witnessing a robust financial turnaround, posting a record profit of ₹7,515 crore for FY 2024-25, the fifth consecutive time when posted a profit. Gross Non-Performing Assets have reduced drastically, and Provision Coverage Ratio (PCR) its among the highest in the industry, United From representatives said.
Raises questions
“Decision to sell a profit-making, stabilised public sector bank to a foreign entity raises critical questions. Till now, the Centre had taken significant steps to support struggling private institutions, such as Yes Bank, by directing public sector giant SBI to infuse capital,” they pointed out. It also converted debt of financially distressed Vodafone Idea into equity. These reflect a policy trend of bailing out the private sector using public resources, while profitable public institutions like IDBI Bank are being sold off.
LIC investments
Between 2013 and 2019-20, the Centre infused ₹23,227 crore into IDBI Bank. LIC, a public sector financial behemoth and its proxy arm, had injected an additional ₹21,624 crore. These were made using taxpayer funds, aimed at reviving the bank. Selling such a revitalised national asset to a foreign entity after years of public investment is deeply troubling, the United Forum said.
Defeats Atmanirbharta
“This situation reflects what many terms as the privatisation of profits and nationalisation of losses. It raises legitimate concerns about fiscal justice, economic sovereignty, and policy coherence under the broader vision of Atmanirbhar Bharat,” it added.
Published on May 22, 2025
This article first appeared on The Hindu Business Line
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