New Delhi, Jun 11 (PTI) CPI(M) Rajya Sabha member John Brittas on Thursday urged Finance Minister Nirmala Sitharaman to reconsider the plan to privatise IDBI Bank, arguing that the move could have implications on financial sovereignty, depositor confidence, social justice and the future of public sector banking.

In a letter to Sitharaman, Brittas said the ongoing process of strategic disinvestment and transfer of management control of IDBI Bank to the private sector raises issues that go beyond fiscal considerations and touch upon assurances given to Parliament and the constitutional responsibilities of the state in safeguarding public financial institutions.

The Rajya Sabha member said that IDBI Bank, established by an Act of Parliament in 1964 as a development financial institution, played a key role in building India's financial architecture and supporting institutions such as Securities and Exchange Board of India, National Stock Exchange, National Securities Depository Limited, Small Industries Development Bank of India and Export-Import Bank of India.

Brittas recalled that when IDBI underwent structural transformation in 2003, the government had assured Parliament that its ownership in the institution would not fall below 51 per cent.

"These assurances formed the very basis upon which the legislative restructuring of IDBI was accepted," he said, adding that the Parliamentary Standing Committee on Finance had also cautioned against dilution of government ownership below that threshold.

The CPI(M) leader said the bank has staged a strong turnaround in recent years, reporting steadily rising profits and posting a net profit of Rs 9,513 crore in 2025-26.

"To privatise the institution at a stage when its financial position has stabilised, and its performance has improved, raises the legitimate question of whether the public sector is being asked to bear the burden of recovery while the benefits of stability are being transferred elsewhere," he said.

Brittas also highlighted IDBI Bank's role in financial inclusion programmes and lending to farmers, small entrepreneurs and other sections of society, and warned that private ownership could dilute its social banking role, particularly in rural and semi-urban areas.

The MP expressed concern over the impact of privatisation on more than 20,000 employees of the bank, including those belonging to Scheduled Castes, Scheduled Tribes, Other Backward Classes, Economically Weaker Sections, women and differently-abled persons. He said protections relating to service conditions, pension and superannuation benefits could also be affected.

Brittas further raised concerns about valuable land assets allotted to IDBI Bank over the years by central and state governments at concessional rates or on preferential terms because of its public sector character.

He argued that transferring such assets to private ownership would amount to an indirect transfer of publicly created value and raise questions of equity and public trust.

The CPI(M) MP also flagged what he described as the growing "foreignisation" of India's banking sector, citing foreign investments and acquisitions in Indian banks over recent years. He said reports suggesting interest from Canada's Fairfax Group in acquiring IDBI Bank warranted careful scrutiny.

Referring to the 2008 global financial crisis, Brittas said India's banking system remained relatively insulated because of prudent regulation and predominantly domestic ownership structures, underscoring the importance of maintaining a strong public banking framework.

Urging the government to suspend the strategic disinvestment process, he said the issues involved transcend the fate of a single institution and concern the wider banking sector, employees and the sovereignty of India's financial system. PTI AO HVA