The All India Trade Union Congress (AITUC) has strongly opposed the Union Cabinet’s approval to sell a majority stake in public-owned IDBI Bank to Canada-based Fairfax Financial Holdings Ltd for Rs 52,748 crore.
In a statement issued on Thursday, AITUC General Secretary Amarjeet Kaur termed the decision an “economic folly” and a “betrayal of public interest,” accusing the Government of monetizing state assets to serve corporate interests at the expense of national priorities. Expressing severe concern over the unilateral nature of the decision, Kaur highlighted that the transaction was cleared without prior public consultation or parliamentary scrutiny.
“This is undemocratic and a matter of serious public concern,” Kaur stated. “The policy raises fundamental questions about public ownership, the obligation of a democratically elected Government toward taxpayers’ money, and the future of India’s banking system. It reflects an obsequiousness to domestic and international corporate interests.”
AITUC pointed out that IDBI Bank was turned around using public funds and support from the state-owned Life Insurance Corporation of India (LIC) after suffering severe losses due to non-performing assets (NPAs). Having shoulder-to-shoulder carried the burden of recovery, the bank bounced back to post a record net profit of Rs 9,513 crore in FY26. Kaur argued that transferring over 60 per cent shareholding and management control to a foreign entity right when the bank’s future earning potential is robust runs entirely counter to the nation’s long-term interests. She further called on the Government to disclose all records regarding loan write-offs, provisioning, capital infusions, and asset valuations.
Rejecting the argument that the move attracts productive Foreign Direct Investment (FDI), AITUC asserted that FDI should build new manufacturing and technological capacity rather than merely transfer ownership of existing national assets.
The union raised alarm over worker protection, employment security, trade union rights, branch operations, and affordable credit for agriculture and small businesses under foreign private management.
Demanding that the Government halt the transaction immediately, Kaur urged the administration to place the full proposal before Parliament for a transparent assessment, emphasizing that banking must serve the public and the national economy rather than private capital.