The All India Bank Officers’ Association (AIBOA) has raised objections to the proposed disinvestment of government and Life Insurance Corporation of India stakes in IDBI Bank, alleging valuation discrepancies and inadequate transparency in the sale process.

In a letter dated September 3, 2026, addressed to the Secretary, Department of Investment and Public Asset Management (DIPAM), the association sought a reconsideration of the exercise and disclosure of the bank’s property holdings before proceeding.

Signed by General Secretary S. Nagarajan, the representation cites media reports suggesting that an earlier expected reserve price of around ₹110 per share, implying a transaction value of approximately ₹70,000 crore, had subsequently fallen to around ₹81 per share and ₹53,000 crore.

The association questions the justification for the reported ₹17,000-crore reduction. These figures are presented in the letter as media-reported estimates, rather than officially confirmed transaction terms.

Profit-Based Valuation Argument

Citing net profit of ₹9,513 crore for FY2025–26, AIBOA applies different earnings multiples to argue for higher valuations. Under its conservative calculation, using approximately ₹9,500 crore in annual profit and a multiple of 15, it arrives at ₹133 per share.

That figure represents the association’s valuation argument; the letter does not establish it as an independently assessed fair value.

AIBOA also argues that LIC’s investment interests and those of minority shareholders must be protected.

Real Estate At Centre Of Objections

The association’s principal concern is the alleged difference between the book value and market value of IDBI Bank’s properties.

The letter cites a premises book value of ₹8,880.83 crore and claims that the bank’s real estate holdings across the country could have a market value exceeding ₹30,000 crore.

It refers specifically to a purported 50-acre property in Hyderabad, applying a cited auction benchmark of ₹269 crore per acre to estimate its value at ₹13,450 crore. The applicability of that benchmark to the bank’s property is not independently established by the material supplied.

AIBOA argues that transferring management control could enable a buyer to monetise valuable properties. This is a concern expressed by the association, rather than an established plan by any prospective purchaser.

Demand For Transparency

The association has sought publication of property-wise book and market values on the IDBI Bank and DIPAM websites, arguing that real estate values should be considered in assessing the transaction.

It has also indicated that it may approach the Comptroller and Auditor General of India for an examination of the matter.

The supplied material comprises AIBOA’s representation and does not include a response from DIPAM, LIC or IDBI Bank.