The All India Bank Officers’ Association has formally opposed the proposed IDBI Bank stake sale, arguing that the government's ₹81-per-share reserve price is a significant undervaluation. The union claims the bank’s extensive real estate assets have been severely understated, raising concerns for minority shareholders and LIC policyholders. This challenge adds further complexity to the long-standing privatization process.
The All India Bank Officers’ Association (AIBOA) has intensified its opposition to the government’s plan to sell a controlling stake in IDBI Bank. The union has formally called for a review of the transaction, specifically targeting the proposed reserve price of ₹81 per share. This figure is significantly lower than the ₹110 valuation discussed earlier in the year, and the association argues it fails to reflect the bank’s true financial health.
At the core of the dispute is how the bank’s real estate assets are being valued. While the bank’s books officially list fixed assets at approximately ₹8,880 crore, the association estimates the actual market value of the bank’s 2,000-plus properties could exceed ₹30,000 crore. To highlight this gap, the union pointed to a single 50-acre plot in Hyderabad, which they suggest could be worth nearly ₹13,450 crore based on recent regional property auctions. The association contends that failing to account for these assets in the sale price unfairly impacts minority stakeholders and Life Insurance Corporation of India (LIC) policyholders.
IDBI Bank has shown solid financial performance, reporting a net profit of ₹9,513 crore for the 2025-26 fiscal year. Given this, the union argues that a floor price of at least ₹133 per share would be more appropriate. The government and LIC currently hold a combined 94.71% stake in the lender and are aiming to sell a 60.72% controlling stake to a private buyer.
Beyond valuation, the process faces potential regulatory hurdles. Reports suggest that Fairfax Financial Holdings has emerged as a key bidder, but the acquisition could create a conflict with Reserve Bank of India (RBI) ownership rules, as the firm already controls CSB Bank. While there is talk of a potential two-year compliance window to resolve such ownership issues, the situation adds a layer of uncertainty for investors. The AIBOA has requested that the Department of Investment and Public Asset Management (DIPAM) release detailed property audits and clarify the valuation methodology before any final agreement is signed.
For investors, the key monitorable will be the official response from regulators and the government regarding these valuation concerns. Further delays or changes to the sale structure could lead to continued stock volatility. Shareholders may also watch for any official disclosures regarding the final reserve price and the status of potential regulatory approvals for any interested bidders.