IDBI Bank staff plan two-day nationwide hunger strike on November 2 and 3 over sale

what happened

The United Forum of IDBI Officers and Employees, which includes two union associations, has called a two-day nationwide hunger strike for November 2 and 3, Monday and Tuesday. The move targets the proposed sale of the bank to Canada Inc., the parent entity of Fairfax Financial Holdings.

The union wants the government to buy at least 6% of the shares, either from LIC or on the stock market, so that the state keeps a 51% holding, as promised in both houses of Parliament in December 2003. Workers also want written statutory guarantees on service conditions, pensions and reservation policies. The leaders warned that without a response they could move to an indefinite strike with no further notice.

Earlier, the Centre announced a strategic restructuring under which the buyer would take over 60%-plus of the shares together with management control. The Cabinet Committee on Economic Affairs approved the deal on October 14 at a consideration of ₹52,878 crore for a 60.72% stake, made up of 30.48% held by the Centre and 30.24% held by LIC. The Finance Ministry called it the largest foreign direct investment in India to date.

why it matters

For markets, the deal matters as one of India's largest foreign investments and a change of control at a bank with state ownership. Staff protests could delay the handover of control, so the dispute and the government's response are worth watching.

market impact

Indian banking sector and IDBI Bank: risk of deal delays if staff protests escalate

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