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BRS working president K T Rama Rao (KTR) has questioned the Union Government over the proposed sale of IDBI Bank, raising concerns about the bank's valuation, changes in the bidding process and the alleged failure to account for its valuable assets, including prime real estate in Hyderabad.
He has also sought answers on why the concerns raised by bank employees were not being addressed. In a social media post, KTR said public sector undertakings (PSUs) and public sector banks were national assets that needed to be safeguarded. Expressing concern over reports of alleged undervaluation of IDBI Bank, he questioned the rationale behind changing the rules and valuation methodology after the bids reportedly fell below the reserve price. "Why were the rules and valuation methodology changed when bids fell below the reserve price?" he asked, seeking transparency in the disinvestment process. KTR also drew attention to IDBI Bank's valuable real estate holdings, particularly prime land parcels in Hyderabad. He questioned whether the actual worth of these properties had been properly assessed and included in the overall valuation of the bank before proceeding with the proposed stake sale. The BRS leader further questioned the Union Government's response to concerns expressed by IDBI Bank employees. He wanted to know why their objections and apprehensions were not being adequately addressed before taking a decision on the future of the public sector bank. Emphasising that PSUs and public sector banks were national assets and needed to be protected, KTR said the Union Government owed the country clear answers before selling a reputed public sector bank to a private player. He stressed the need for transparency and accountability in a transaction involving a major public sector banking institution and questioned the urgency behind the proposed sale. Concluding his post with a pointed question to the Centre, KTR asked, "What's the hurry?" The Reserve Bank of India (RBI) had placed IDBI Bank under its Prompt Corrective Action (PCA) framework in May 2017 due to its deteriorating financial condition. The restrictions were lifted in March 2021 following improvements in the lender's financial performance. The Union Cabinet on Wednesday (October 14) approved the sale of a controlling 60.72 per cent stake in IDBI Bank to Canada's Fairfax Financial Holdings for Rs 52,878 crore, following which Life Insurance Corporation of India's (LIC) shareholding will fall to 19 per cent. The restructuring follows a significant improvement in IDBI Bank's financial health, with gross non-performing assets (GNPAs) declining from 31.78 per cent in September 2018 to 2.32 per cent in March 2026. Net non-performing assets (NNPAs) also fell sharply from 17.30 per cent to 0.15 per cent during the same period, while the bank posted a net profit of Rs 9,513 crore in FY26. (ANI)
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