Fairfax’s $5.5 Billion IDBI Bank Deal Faces Employee and Political Opposition
Canadian financial firm Fairfax Financial Holdings’ proposed $5.5 billion takeover of IDBI Bank is facing growing opposition from bank employees and political parties in India. The Indian government approved the sale of a 60.72% stake in the bank to Fairfax for approximately ₹53,000 crore ($5.59 billion) on October 14. The transaction would mark the largest foreign investment in India’s banking sector.
The United Forum of IDBI Officers and Employees (UFIOE) has continued its nationwide strike for a second consecutive day, demanding that the government withdraw the privatisation plan. Employee representatives have questioned the bank’s valuation methodology and argued that its status is being treated inconsistently during the sale process. They have urged the government to retain majority ownership by increasing its stake above 51% and protect employee interests.
The proposed deal has also attracted criticism from Congress leader Rahul Gandhi, who has supported the protesting employees and opposed transferring control of the bank to Fairfax. Finance Minister Nirmala Sitharaman has defended the government’s decision, citing the bank’s financial recovery through recapitalisation and improved management. Meanwhile, an opposition-linked labour organisation has demanded an independent investigation into the valuation and sale process. The Finance Ministry has rejected allegations of undervaluation, while Reuters said it could not independently verify claims of irregularities.
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