IDBI Bank stake sale to Fairfax Financial faces opposition

The Communist Party of India (Marxist) has formally opposed the central government's decision to sell a 60.72 percent stake in IDBI Bank to Canada-based Fairfax Financial Holdings. The party claims the move violates Reserve Bank of India guidelines regarding voting rights for foreign entities in Indian banks. They further argued that the bank's valuation was lowered to benefit Fairfax and expressed concern that privatization could harm small depositors and social sector lending.

In response to employee concerns and planned strikes, Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), stated that service conditions for existing employees and pensioners will remain unchanged. Chawla clarified that under the share purchase agreement, the strategic buyer cannot modify or diminish employee terms. He noted that a special pension fund has been set aside to honor all commitments and emphasized that the bank will continue to operate under existing company and labor laws.