Report by Kamgar Ekta Committee correspondent
The Central Government has been pursuing the privatisation of the IDBI Bank for years despite the opposition of its bank employees and officers. The financial bids were received in March 2026 reportedly from two bidders, Fairfax Financial Holdings Ltd. and Emirates NBD. As the bids were less than the minimum price decided by the government, it was announced that the privatisation of the Bank has been called off.
The Fairfax Financial Holdings was founded by non-resident Indian (NRI) from Canada and has already acquired CSB Bank (formerly Catholic Syrian Bank) in 2018. The Emirates NBD plans to acquire 60 per cent shareholding in the RBL Bank for Rs 26,853 crore and has received the government approval a few adays back. This is the largest foreign direct investment (FDI) in India’s financial sector and the first time a profitable Indian bank will become a subsidiary of a foreign institution. The Emirates NBD is a Dubai-based financial group and majority owned by the Dubai government.
It is now reported that the privatisation of the IDBI bank will be again pursued by inviting fresh bids. The minimum price will be reduced by around 20% to make it more attractive for buyers.
This is not the first time that government is reducing the minimum price to make it more attractive for capitalists to purchase a public sector enterprise. This was done repeatedly in case of Air India till the terms of privatisation were made what capitalists wanted. The same may happen in the case of the IDBI Bank. The IDBI Bank share price has fallen significantly since March 2026. This will be used as another excuse to demand further reduction in the minimum price.
The IDBI made a profit over RS. 9, 500 crore in 2025-26, Rs 7,500 crore in 2024-25 and Rs. 5,600 crore in 2023-24. Thus, it made a profit of over Rs, 22,000 crore in last three years and the profit has been growing year after year. Yet, the government is planning to reduce the minimum price for selling the Bank.
The privatisation is carried out for the benefit of capitalists at the cost of workers and consumers is once again established by the way the government is pursuing the privatisation of the IDBI Bank. They dictate terms at which the privatisation is acceptable to them.
The privatisation is the agenda of capitalist class and is implemented by every party which is put in power by them whether at states or at Centre. Workers as a class will have to unite and oppose the rule of the capitalist class to stop privatisation and other anti-worker, anti-people attacks of the present ruling class.