The United Forum of IDBI Officers and Employees has called a two-day nationwide strike against the sale of IDBI Bank to Fairfax Financial Holdings, according to CNBC. IDBI Bank employees and officers have announced a nationwide hunger strike on 2 and 3 November, covering the bank's branches and offices across the country.
The Canadian group's planned takeover now faces opposition from employees and from political parties. India's government declared a Fairfax subsidiary the strategic buyer for a 60.72% stake at INR 81 a share, a total of about INR 528.78 billion, or roughly US$5.6 billion, about 23% above IDBI Bank's book value at 30 June 2026, Fairfax said. The government said on 14 October that the deal would be the largest foreign direct investment in India's financial sector. IDBI shares opened at around 79 rupees on Monday, CNBC reported.
WHAT THE UNIONS WANT
The forum has raised grave concerns about the transparency of the sale and the valuation process, and wants the government to cancel the privatisation and strengthen the bank instead, CNBC reported. It has also asked the government to buy at least 6% more of the bank, from Life Insurance Corporation of India (LIC) or in the market, to keep a minimum 51% holding, citing assurances given in Parliament in December 2003.
If the sale goes ahead, the unions want existing staff to be able to move to public sector banks without losing seniority, salary or retirement benefits. The forum said it was willing to negotiate with the government and the bank's management, but warned that unresolved demands could lead to prolonged protests, including an indefinite strike.
HOW THE SALE WAS BUILT
The government and LIC took control of Mumbai-based IDBI in 2019 after it ran up significant loan losses. Each is selling just over 30% to Fairfax, and both would keep smaller holdings after the sale.
The government set a benchmark of 75.99 rupees a share, the average of the prices submitted by its advisers, and two bidders, identified by Reuters as Fairfax and Dubai's Emirates NBD, made final offers. Opposition leader Rahul Gandhi backed the unions last week, while finance minister Nirmala Sitharaman said the bank had been revived through recapitalisation of more than 250 billion rupees.
WHAT FAIRFAX PLANS
Fairfax plans to contribute its Digit insurance businesses and the Fairfax group's interest in IIFL Capital to IDBI Bank, contributions that need the approval of the Reserve Bank of India among others. It expects Rakesh Sharma, IDBI Bank's managing director and chief executive, to keep leading the combined company, with N. S. Kannan, a former chief financial officer of ICICI Bank, acting as chairman, all subject to the central bank's approval.
Fairfax has said that being named strategic buyer is not the final stage of the government's sale process.
THE TGB VIEW
Public sector banks held 54.9% of the consolidated balance sheet of India's scheduled commercial banks at end-March 2025, according to the TGB market profile, and the unions want the government to keep at least 51% of IDBI Bank rather than hand control to a foreign buyer. The other finalist, which Reuters identified as Emirates NBD, shows a 16.6% return on equity for 2025 in the TGB Bank Rankings and bought into RBL Bank last year, while government regulations on the IDBI investment require Fairfax to merge or exit its stake in CSB Bank over the next two years. Watch the strike's second day on 3 November and the Reserve Bank of India's decision on the Digit and IIFL Capital contributions.
Related: IDBI Bank shares fall 7% as government agrees $5.5 billion stake sale to Fairfax
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