IDBI Bank Share Price Tumbles: Staff to Protest Before Parliament to Stall Disinvestment

The share price of IDBI Bank tumbled by 9% to ₹72 during early trading hours on January 15 2025. This sharp decline comes amidst growing concerns over the proposed strategic disinvestment of the bank. The government, along with the Life Insurance Corporation of India (LIC), plans to sell a 61% stake in the lender, sparking apprehensions among stakeholders.

Protests Planned to Oppose Privatisation

To voice their opposition, the officers and employees of IDBI Bank, under the United Forum of IDBI Officers and Employees, have announced a dharna (protest) before Parliament during the Budget session. This protest aims to highlight their demand to stall the disinvestment process and safeguard the interests of the bank’s 30 million customers, 20,000 employees, and its broader role in the nation’s financial ecosystem.

Why Oppose the Disinvestment?

The United Forum has raised concerns about selling a profit-making government entity to private and potentially foreign entities. Over the past four financial years (FY21–FY24), IDBI Bank has consistently reported profits. For FY25, the bank is expected to post a profit of ₹7,000 crore. 

Privatisation Timeline and Stake Details

The disinvestment process for IDBI Bank was initiated in January 2023 when the government invited Expressions of Interest (EoIs). The Centre and LIC collectively hold a 94.72% stake in the bank, with the government owning 30.48% and LIC holding 30.24%. While the privatisation process is underway, no specific timeline or targets have been mentioned in the Union Budget 2024-25.

Second Quarter Financial Performance

Despite the ongoing uncertainty, IDBI Bank has reported robust financial results. For the second quarter of FY25, the bank posted a 39% year-on-year increase in standalone net profit, reaching ₹1,836 crore

Upcoming Board Meeting on Financial Results

The Board of Directors of IDBI Bank is scheduled to meet on January 20, 2025, to review and approve the unaudited financial results for the quarter and 9 months ending December 31, 2024. This meeting will provide further insights into the bank’s financial trajectory.

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