KTR questions IDBI Bank privatisation, demands transparency in valuation

BRS working president KT Rama Rao questioned the proposed privatisation of IDBI Bank, seeking transparency in asset valuation and an explanation for the sale. The All India IDBI Officers Association also urged a review, citing employee concerns and public interest.

Hyderabad: Raising concerns over the proposed privatisation of IDBI Bank, BRS working president KT Rama Rao demanded that the Union government explain the urgency behind selling a reputed public sector bank to a private player, particularly amid allegations of undervaluation of its assets.

Stressing the need to safeguard Public Sector Undertakings (PSUs) and public sector banks, which he described as national assets, Rama Rao questioned the transparency of the proposed sale.

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“Before selling off a reputed public sector bank to a private player, the Union government owes the country some straight answers. What’s the hurry?” Rama Rao asked on X.

Pointing out that IDBI Bank owns valuable real estate assets, including prime land in Hyderabad, he sought to know whether their value had been properly assessed and accounted for in the proposed sale.

“Reports about undervaluation of IDBI Bank are really concerning. Why were the rules and valuation methodology changed when bids fell below the reserve price? Why are the concerns raised by the IDBI employees not being addressed?” Rama Rao questioned.

Meanwhile, the All India IDBI Officers Association, which has been opposing the bank’s privatisation, urged the BRS working president to intervene and demand a review of the proposed sale. The association also sought measures to protect the interests of employees and their families.

It alleged that despite consistently recording profit growth in recent years, IDBI Bank was being proposed for sale at a lower valuation. Such a move would not serve the nation’s interests, the association argued.

“A profitable and strategically important Indian bank should not be sold at a throwaway price, thereby risking foreign control and adversely affecting customers, MSMEs, agriculture and the broader economy,” the association stated on X.

The proposed privatisation also raised serious concerns over employees’ job security, reservation safeguards, public interest and the future of a strategically important financial institution, it added.