All India IDBI Officers' Association

IDBI has been sold to Fairfax as if it is on a Diwali festival discount on Flipkart or Amazon. Bizarre!

"I don't think anyone can claim or should claim that the bank has been turned around and therefore we should be able to, or we are justified to sell it cheap": SC Garg (@Subhashgarg1960), Ex-Finance & Economic Affairs Secretary on IDBI bank sale Listen in for more details #IDBIBankSale #RahulGandhi #NirmalaSitharaman #TTP | @maryashakil

The Leader of the Opposition, @RahulGandhi, has raised the issue of the dodgy sale of IDBI Bank. For anyone who needs a refresher on the IDBI Bank sale - which smacks of crony capitalism-read on. ▪️IDBI Bank was sold to Canada-based Fairfax Financial Holdings for Rs 52,878 crore at Rs 81 per share ▪️The sale happened after rules were changed mid-process and at a much lower price than the original reserve price of ₹94.42, which was discarded ▪️Initial sealed bids from Fairfax and another entity were below the minimum reserve price of Rs 94.42. Fairfax bids came at Rs 75 ▪️Core Group of Secretaries on Disinvestment changed valuation method, asked Fairfax and another bidder to give new bids ▪️Fairfax revised bid to Rs 81 per share, still well below the original reserve price of Rs 94.42 ▪️Modi govt accepted it and also gave some relief on disputed tax claims on IDBI Bank ▪️In January 2019, LIC infused Rs 21,624 crore in IDBI when the bank was placed under the RBI’s strict Prompt Corrective Action framework ▪️LIC’s investment was at an average of ~₹61 per share to acquire a 51% controlling stake ▪️Later that year, LIC pumped in another ₹4,743 crore ▪️LIC’s investment required a special exemption from IRDAI, because normal rules cap an insurer’s stake in a listed company at 15% ▪️Over ₹26,000 crore of policyholders’ savings was used and locked up for years to clean the balance sheet and rescue IDBI Bank, only so that it could be stealthily sold ▪️The govt and LIC have been reduced to minority holders with no board seats ▪️Modi Govt’s internal note says this sale was necessary because the govt is under fiscal stress due to high energy prices, lack of FDI inflows and the falling Rupee ▪️The justification for the change of rules and methodology was made by citing General Financial Rules for the sale of government physical assets (not shares) ▪️It cited the Railway Stores Code on auctioning scrap: "Bids lower than the reserve prices may, however, be accepted by the Depot Officer where found expedient provided the Depot Officer doing so records his reasons in writing." ▪️IDBI Bank’s Gross NPA was at 31.78% in September 2018. The bank posted losses for 13 consecutive quarters accumulating to about ₹41,800 crore ▪️IDBI Bank entered RBI’s PCA in May 2017 and exited PCA on 10 March 2021 after the December 2020 results showed a turnaround ▪️IDBI Bank’s FY25 profit: ₹7,515 crore FY26 profit: ₹9,513 crore• Total business crossed ₹6.27 lakh crore by September 2026 ▪️▪️But the questions that remain unanswered: 🔺Why did the govt change the bidding rules after shortlisting and opening sealed bids, without starting the process from scratch? 🔺New bidders might have wanted to participate under the changed rules, why were they denied a chance? 🔺Why was the second bidder’s identity kept hidden on national-security grounds? 🔺Why should policyholders’ savings be used to clean up assets which are then monetised and made to appear like a distress exit than a transparent market sale? 🔺Finally, why must a bank which has turned profitable be sold at much lower valuation - actually sold at all? ▪️▪️The IDBI sale proves yet again that public and policyholder money absorbs the losses, revives the asset which is then cleaned up and sold without transparency to a bidder of govt’s choice - keeping norms at bay and changing rules midway. It also raises the important question of why must an asset which has turned profitable be sold, especially at lower valuation? Source: BusinessWorld’s investigative report by Palak Shah

The decision to sell IDBI Bank is not just about privatisation; it is about the future of employees and a public institution built with people's money. The employees turned a loss-making bank into one earning over ₹9,000 crore in profit. Their hard work deserves recognition, not privatisation. We stand firmly with IDBI Bank employees and support their legitimate demands. Their fight is our fight. @AIIDBIOA_BIHAR

#IDBISaleScam LEADER-BANK KO BACHAYEGA..! DEALER-BANK KO BECHEGA..!! #RahulGandhi