Employees of IDBI Bank Ltd. began a two-day nationwide strike on Monday to protest the planned privatization of the lender and call on the federal government to scrap its sale to Fairfax Financial Holdings Ltd. More than 10,000 staff across over 2,000 branches will take part in the agitation on Nov. 2 and Nov. 3, according to a statement from the United Forum of IDBI Officers & Employees posted on social media platform X.
IDBI Bank's shares ended 2.1% lower in Mumbai on Monday, while the benchmark NSE Nifty 50 Index rose 1.7%. The strike comes just weeks after Canadian billionaire Prem Watsa-led Fairfax agreed to acquire a 60.72% stake in IDBI Bank, moving the government's long-planned privatization of the lender a step closer. The transaction will be the biggest foreign investment in India's financial services sector.
The employees questioned the transparency of the sale process. The forum said the bank turned around following substantial public investment and sustained efforts by its workforce, and argued that transferring control to a foreign entity raises "serious questions of public accountability and national interest."
After the deal was announced, Watsa assured employees there will be no job cuts, while the government pledged to protect their pension and service conditions, local media reported.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing