Hyderabad, Oct. 31: BRS working president KT Rama Rao (KTR) has questioned the proposed privatisation of IDBI Bank, demanding that the Union government explain the urgency behind selling the public sector lender to a private player. He also raised concerns over allegations of undervaluation and called for transparency in the valuation process.
Rama Rao stressed the need to protect public sector undertakings (PSUs) and public sector banks, describing them as national assets. In a post on X, he questioned the government’s decision to proceed with the proposed sale.
“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.
KTR Raises IDBI Bank Privatisation Valuation Concerns
Pointing to IDBI Bank’s valuable real estate holdings, including prime land in Hyderabad, Rama Rao questioned whether these assets had been properly assessed and included in the proposed sale valuation.
“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?” he said.
Meanwhile, the All India IDBI Officers Association, which has been opposing the bank’s privatisation, urged Rama Rao to intervene and seek a review of the proposed sale.
The association also called for measures to protect the interests of bank employees and their families. It alleged that IDBI Bank had recorded consistent profit growth in recent years but was still being proposed for sale at a lower valuation.
IDBI Officers Association Flags Employee Concerns
The association argued that selling a profitable and strategically important Indian bank at a low price would not serve the country’s interests.
PSUs and Public Sector Banks are national assets that need to be safeguarded
Reports about under valuation of IDBI bank are really concerning. Why were the rules and valuation methodology changed when bids fell below the reserve price?
IDBI also owns valuable real estate assets, including prime land in Hyderabad. Has their value been properly accounted for?
Why are the concerns raised by the IDBI employees not being addressed?
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 ?
— KTR (@KTRBRS) October 31, 2026
“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 in a post on X.
It also raised concerns over employees’ job security, reservation safeguards, public interest and the future of the financial institution.
The proposed privatisation has therefore drawn questions from political leaders and employee representatives over the valuation process, transparency and the potential impact on the banking sector.
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