KTR Questions Urgency and Transparency in IDBI Bank Disinvestment

BRS working president K T Rama Rao (KTR) has questioned the Centre’s decision to sell a majority stake in IDBI Bank, raising concerns over its valuation, changes in bidding conditions and the assessment of the bank’s valuable properties. He demanded an explanation for the urgency behind the proposed sale and called for complete transparency in the disinvestment process.

In a statement shared on social media, KTR said public sector institutions and banks represented the country's national wealth and that the Centre had a responsibility to protect them. Expressing concern over reports that IDBI Bank was being undervalued, he questioned why the government had changed the bidding conditions and valuation procedures after the initial bids reportedly fell below the reserve price.

He particularly sought clarity on whether the bank's valuable real estate assets in Hyderabad had been properly assessed and included in its overall valuation. He also questioned why the Centre was not adequately addressing the concerns raised by bank employees, stressing that their views should be considered before decisions were taken about the future of the institution.

KTR demanded that the government provide clear answers to the public before transferring such an important public sector bank into private hands, emphasising the need for accountability and transparency throughout the transaction.

The Union Cabinet approved the sale of a 60.72 per cent stake in IDBI Bank for Rs.52,878 crore to Canada-based Fairfax Financial Holdings on October 14. The transaction involves a 30.48 per cent stake held by the Centre and a 30.24 per cent stake held by the Life Insurance Corporation of India (LIC). Following the sale, the Centre's holding will decline to 15 per cent, while LIC's stake will come down to 19 per cent.

The proposed disinvestment comes after a significant turnaround in the bank's financial performance. The RBI brought IDBI Bank under the Prompt Corrective Action (PCA) framework in May 2017, but removed the restrictions in March 2021 following improvements.

Its gross non-performing assets declined from 31.78 per cent in September 2018 to 2.32 per cent in March 2026, while net NPAs fell from 17.30 per cent to 0.15 per cent. The bank also recorded a net profit of Rs.9,513 crore in 2025-26, adding to the debate over its valuation and proposed sale.