Two-Day Strike Protests Plan to Sell 60.72% of India’s IDBI Bank
Key Facts
Employees of India’s IDBI Bank began a nationwide two-day strike on 2 November 2026 to protest the bank’s privatization plan and the sale of a 60.72% stake to a wholly owned subsidiary of Fairfax Financial. The United Forum of Bank Officers and Employees said more than 10,000 employees across more than 2,000 branches would take part in the action on 2 and 3 November. The strike follows the Indian government’s selection of Fairfax as the “strategic buyer” for the stake, a step that does not complete the sale. The offer is valued at about 528.78 billion rupees, or nearly 5.6 billion dollars, according to the company. Fairfax said its offer price of 81 rupees per share includes a premium of about 23% to the bank’s book value on 30 June 2026.
Employees’ objections center on the transfer of control to a foreign entity and what they see as the role of public funds and employee contributions in the bank’s recovery. The forum said, “The bank’s return to the right track came as a result of sustained public investment and employees’ contributions.” It added that the government and the Life Insurance Corporation of India injected more than 46,000 crore rupees into the bank during its loss-making period between 2016 and 2020. According to the forum, the bank recorded cumulative net profits of 30,106.43 crore rupees over the past six years. It also reported that the gross non-performing loan ratio fell from 31.78% in 2018 to 2.30%, while net non-performing loans stood at 0.16%.
The proposed transaction includes the sale of 30.48% of the Indian government’s stake and 30.24% of the Life Insurance Corporation’s stake, bringing the total stake on offer to 60.72%. After the sale, the government will retain a 15% stake and the corporation a 19% stake, according to India’s finance ministry. The ministry said both parties would withdraw their representatives from the board, and their stakes would become public shareholdings. Fairfax is also proposing a broader restructuring of the bank’s business, including the transfer to the bank of its stakes in Go Digit Life Insurance and Go Digit General Insurance, along with Fairfax India’s stake in IIFL Capital Services. With this proposal, the group aims to bring banking, insurance and investment services under the stake-purchase transaction.
Explaining the valuation process, the finance ministry said the average of two independent valuations, at 75.99 rupees per share, was used as the benchmark for evaluating qualified bids. It added that the winning bid exceeded this benchmark as well as the fair-value estimates prepared by the two agencies. The market valuation methodology was based on the multiples of listed public-sector banks and their closing accounts as of 31 March 2026, alongside an asset valuation methodology. The ministry said the share price fluctuated between 61.01 and 118.38 rupees during the valuation period, and was therefore excluded from determining fair value on the grounds that it might not reflect the bank’s intrinsic value. The competition began with five parties expressing interest, four of which qualified; two then submitted technical and financial bids and became qualified bidders.
The contrast between the labor protest and broader market gains was reflected in the stock’s performance on the strike day. IDBI shares ended the session in Mumbai down 2.1% on 2 November, while the Nifty 50 rose 1.7%. On employees, a Bloomberg report said Prem Watsa had pledged not to cut jobs, and the government had pledged to protect pensions and service conditions. But Fairfax’s announcement that it had been selected as the strategic buyer does not settle the transaction; the company said no definitive binding agreements had been signed. The proposed deal remains subject to government, regulatory, shareholder and debt-holder approvals, among others.
The next step is for the buyer to submit its details to the Reserve Bank of India for a fit-and-proper assessment and provide a roadmap for compliance with regulatory conditions, according to the finance ministry. The ministry also said the transaction would be the largest foreign direct investment in India’s financial sector to date, and that it expects the buyer to bring private capital, technology and new management practices. That remains contingent on completing reviews and approvals that are still pending. Regarding communications about the transaction, Fairfax said a recording of its conference call held on 15 October 2026 would remain available until 5:00 p.m. Eastern Time on 12 November. In the meantime, employees have begun their strike while ownership of the proposed stake remains subject to completion of the process.