Bank union urges Reserve Bank of India to block Fairfax takeover of IDBI Bank

Union Concerns

The United Forum of IDBI Officers and Employees has asked the Reserve Bank of India to block the proposed sale of IDBI Bank to Fairfax Financial Holdings. In a letter sent to the RBI Governor on November 15, the union raised doubts about the buyer's credentials, the bank's valuation, and how the purchase will be funded. The employee group represents two separate bodies of IDBI officers and staff.

Valuation and Funding

The union questioned the funding sources for the proposed Rs 52,878 crore acquisition. It alleged that the buyer might sell other group shareholdings to IDBI Bank itself to raise money and demanded a close check on every rupee used in the deal. The union also pointed out a valuation mismatch of Rs 54,224 crore by comparing this deal with Emirates NBD buying a stake in RBL Bank. Furthermore, the union questioned the lowering of the government reserve price from Rs 94.42 to Rs 75.99 per share.

Ownership and Impact

The union warned that foreign ownership could hurt job security, service rules, retirement benefits, and reservation policies for workers. IDBI Bank held total deposits of Rs 3.56 lakh crore as of September 30, 2026. The group also pointed out that Fairfax already holds a 40 percent stake in CSB Bank, which could raise concentration issues.

Context

Bank privatisations in India often spark intense debates among employee unions over job security, public asset ownership, and depositor safety. The Reserve Bank of India acts as the main banking regulator and holds the power to approve or reject changes in ownership for major financial institutions in the country.