Politics · India Bureau
IDBI staff forum challenges government stake sale plan
Employee representatives of Industrial Development Bank of India have urged the government to reconsider its proposed divestment, citing concerns over the bank's valuation methodology. The government has assured staff that employment terms will remain unaffected by any ownership changes.
LSN India ·
The IDBI Employees' Forum has formally requested a review of the government's decision to divest its stake in the state-owned lender, according to statements from the employee representative body. The forum has called for a halt to the sale process pending disclosure of detailed valuation parameters used to assess the bank's worth. Officials said the concerns centre on the methodology employed in calculating the bank's value ahead of potential divestment to a strategic buyer. The development marks the latest pushback against the government's privatisation plan for IDBI, which has faced scrutiny from multiple quarters since being announced. Government officials responding to the concerns have reiterated that the employment conditions, service benefits and pension entitlements of existing IDBI staff will not be adversely affected regardless of changes to ownership or management control. The assurance appears aimed at allaying fears among the bank's workforce about job security and statutory protections in the event of a change in ownership. IDBI, a key development finance institution, has been under government control and remains a significant player in India's banking sector despite competitive pressures in recent years.