KTR questions Centre's urgency to sell IDBI Bank, raises concerns over valuation

Hyderabad: BRS working president K T Rama Rao (KTR) raised concerns over the proposed sale of IDBI Bank to a foreign company and questioned the Central government's urgency in selling the bank.

He sought answers from the Central government over reported changes in valuation rules and methodology after bids fell below the reserve price.

KTR also asked whether the bank's valuable real estate assets, including prime land in Hyderabad, had been properly accounted for.

On October 14, the Union government approved the sale of a 60.72 per cent stake in IDBI Bank to Canada-based Fairfax Financial for approximately Rs 52,878 crore as part of its strategic disinvestment programme.

In a post on social media platform X, KTR said public sector undertakings (PSUs) and public sector banks are national assets that need to be safeguarded.

Expressing concern over reports of the alleged undervaluation of IDBI Bank, KTR asked, “Why were the rules and valuation methodology changed when bids fell below the reserve price?”

Responding to an X user's appeal regarding IDBI Bank's privatisation, KTR pointed out that the bank also owns valuable real estate assets, including prime land in Hyderabad.

“Has their value been properly accounted for?” he asked.

He also questioned why the concerns raised by IDBI Bank employees were not being addressed.

KTR further sought an explanation from the Central government regarding the proposed privatisation of IDBI Bank.

“Before selling off a reputed public sector bank to a private player, the Union government owes the country some straight answers,” he said in the post, adding 'Why hurry?".

Meanwhile, IDBI Bank employees have strongly opposed the Union government's decision to sell a majority stake in the bank and demanded that the sale be suspended.

The United Forum of IDBI Officers and Employees (UFIOE) has announced a two-day nationwide hunger strike across IDBI Bank branches and offices on November 2 and 3.

The employees' forum has also warned that it could intensify its agitation, including launching a prolonged or indefinite strike, if its demands remain unresolved.