The All India Bank Officers' Association (AIBOA) has formally urged the President of India to intervene and stop the proposed divestment of IDBI Bank, arguing that the sale breaches parliamentary assurances and threatens the integrity of public sector banking.
The union's appeal marks a significant escalation in the campaign against the government's plan to sell a controlling stake in the lender, potentially to a foreign investor.
AIBOA warned that allowing a foreign entity to take control of IDBI Bank could set a precedent for similar takeovers of other public sector banks where the Life Insurance Corporation of India (LIC) has invested capital.
The union contends that such moves would dilute public ownership and undermine the strategic autonomy of India's financial sector.
This political pushback arrives amid intensifying legal and administrative resistance to the sale.
Former Indian government secretary EAS Sarma has previously declared the divestment "prima facie illegal," asserting that the transaction violates specific assurances given to parliament and disproportionately harms bank employees.