All-India Bank Officers’ Association (AIBOA) has urged Finance Minister Nirmala Sitaraman to revisit proposed disinvestment of Government and LIC stake in IDBI Bank and shelve the same in ‘larger national interests.’
S Nagarajan, General Secretary, AIBOA, has opened a new front in the ongoing trade union campaign against divestment, saying, IDBI, then developmental financial institution, was allotted immovable assets and land parcels on lease basis for 99 years as it was owned by the Government of India.
Rebranding of IDBI
It was in 2005 that Industrial Development Bank of India (IDBI) merged with its subsidiary commercial division, IDBI Bank, to form a single entity, IDBI, later rebranded as IDBI Bank. This strategic merger allowed the development financial institution to transition into a retail-focused commercial bank.
In an identical communication to Arunish Chawla, Secretary, DIPAM, Nagarajan said IDBI was reportedly allotted valuable lands under Land Acquisition act of 1894 in various parts of country. It has been specifically mentioned IDBI Bank is wholly owned by Government of India and governed as public sector financial institution.
Secure lands back
The AIBOC stand is that several of the land parcels were acquired under the land Act on the premise that such acquisition was for a ‘public purpose’ as defined in Section 3(f)(iv) as for a company wholly owned/controlled by the government. In other words, if IDBI Bank were to slip into hands of a private company, all such lands should revert to the government, as otherwise it would imply an outright violation of that statutory provision. The bid documents make no mention of this, AIBOA argued.
Nagarajan said as immovable assets/land parcels allotted to erstwhile IDBI are not secured back to the control of the Government of India before exercise of disinvestment, it will certainly lead to questionable sale and subject to lot of future complications involving various officials in this connection, Nagarajan said.
Sole eligible bidder
“It is reliably learnt there were initially three interested purchasers of proposed divestment stake from Government as well as from LIC. But at present, it is understood that Emirates NBD Dubai, is sole bidder eligible to pick up the stake. Emirates NBD Dubai is majority-owned and controlled by Government of Dubai. The primary shareholder is the Investment Corporation of Dubai that holds a 40.92 per cent stake, while Dubai Holding holds a 14.84 per cent stake, making it a state-owned entity.”
The process of partial disinvestment is in active consideration and the shortlisted bidders have foreign origin, Nagarajan said. Even as Government of Dubai, through their extended arms, has direct interest/control on Emirates NBD Dubai, back home, DIPAM is in fast-forward mode to complete the process without addressing an important issue, he added.
Published on March 4, 2026
