Mumbai, Nov 1 — More than 10,000 employees of IDBI Bank are set to observe a nationwide two-day strike on November 2 and 3 in protest against the proposed privatisation of the lender, escalating opposition to the government's plan to transfer control of the bank.
The strike has been called by the United Forum of IDBI Officers & Employees, which represents employees across the bank.
The forum has urged the government and the bank's management to scrap the privatisation process, arguing that IDBI Bank's revival has been achieved through public investment and the efforts of employees rather than private ownership.
In a statement, the union said the lender's turnaround was made possible by sustained financial support from the government and LIC, along with the commitment of employees who helped retain customers, maintain operations and restore confidence in the institution during a prolonged period of financial stress.
IDBI Bank faced significant losses between 2016 and 2020 following the recognition of stressed assets under the Reserve Bank of India's Asset Quality Review exercise.
According to the union, the government and Life Insurance Corporation of India infused more than Rs 46,000 crore into the bank during this period to support its recovery.
The employees' body said the bank's financial performance has improved considerably over the past several years.
It noted that IDBI Bank has reported cumulative net profits of more than Rs 30,100 crore over the last six years, while its gross non-performing asset ratio has declined sharply from 31.78 per cent in 2018 to 2.30 per cent.
The bank's net NPA ratio stands at 0.16 per cent, with a capital adequacy ratio of 26.38 per cent and a provision coverage ratio of 99.31 per cent.
Despite the improvement in the lender's financial health, the government is proceeding with plans to transfer control of the bank to Canada's Fairfax Group, a move strongly opposed by employee unions.
The forum has questioned the proposed valuation of the bank, describing it as inadequate, and has raised concerns about transparency in the sale process.