The United Forum of IDBI Officers and Employees has urged the Standing Committee on Finance to thoroughly examine the valuation methodology for the proposed divestment of IDBI Bank, arguing that the bank’s value extends beyond its quoted equity. In its representation to the parliamentary panel, the Forum highlighted IDBI’s nationwide branch network, deposit base, customer relationships, technology infrastructure, trained workforce, institutional relationships, brand goodwill and substantial immovable properties accumulated over more than six decades. It specifically flagged the potential hidden value of land, office buildings, residential premises and training establishments, many of which may have been acquired decades ago at historical costs and could now command significantly higher market values, particularly in prime urban locations. The Forum has called for details of the bank’s significant properties, including their book value, independently assessed market value, development potential and whether these values are adequately reflected in the proposed transaction price. It also urged the committee to ensure binding safeguards against the private monetisation of valuable legacy properties after the transfer of control, including through sales, redevelopment or related-party transactions. The Forum further recommended examining the Share Purchase Agreement and regulatory conditions for provisions covering disposal of material assets, monetisation proceeds, value extraction by controlling shareholders and dividend distribution following major asset sales. It also called for a property-by-property legal audit to determine whether any assets were acquired through compulsory acquisition, concessional allotments or arrangements linked to public purposes and government ownership. The Forum clarified that such properties would not automatically revert to public ownership, but said their title, acquisition history, grant conditions, reversion clauses and change-of-control restrictions should be examined before controlling ownership is transferred. The representation seeks to ensure that assets accumulated during IDBI’s public ownership are properly valued and protected from becoming an unintended windfall in the strategic sale.
