Government sells its stake in IDBI Bank to Canadian Company

The strategic reorganization and ₹52,878 crore stake sale of IDBI Bank to Prem Watsa's Fairfax Financial Holdings was approved by the Union Cabinet on October 14, 2026.

This is the biggest government disinvestment agreement since Air India and the largest foreign direct investment (FDI) in India's financial sector.

The winning bid price of ₹81 per share is being used to complete the transaction. The approved framework calls for Fairfax's subsidiary, M/s 10955230 Canada Inc., to purchase a 60.72% controlling stake in the lender, which will be split nearly equally between the two current major owners:

India's government Sale: Giving up a 30.48% share.

Corporation for Life Insurance (LIC) Sale: Giving up a 30.24% share.

Finance Minister Nirmala Sitharaman categorized the deal as a “strategic restructuring” rather than a complete exit, as the state will maintain a significant footprint:

The Government will retain a 15% stake.

LIC will retain a 19% stake.

Together, they will keep a combined 34% minority holding in the bank.

While the Cabinet Committee on Economic Affairs (CCEA) has cleared the transaction, the deal still awaits a final mandatory “fit and proper ownership” assessment by the Reserve Bank of India (RBI), alongside necessary clearances from the Competition Commission of India (CCI). The formal share purchase agreement is scheduled to be signed and executed before the end of December 2026.

IDBI Bank will officially become a foreign-owned bank following the conclusion of this deal. The winning bidder, Fairfax Financial Holdings, is a massive financial conglomerate headquartered in Toronto, Canada, and led by the Indian-born Canadian billionaire Prem Watsa.

Because Fairfax’s Canadian subsidiary is acquiring a 60.72% controlling stake, IDBI Bank will transition from being a domestic Indian lender into a foreign-controlled institution.

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Rs 575.40 crore Loan NPA in Bank of India(BOI), Account classified as Fraud

The ₹575.40 crore non-performing asset (NPA) account of Future Enterprises Ltd. (FEL), which is promoted by Kishore Biyani, has been designated as fraud by the Bank of India. There is an outstanding balance of ₹575.40 crore in the account. The classification is not anticipated to necessitate any additional provisioning or have an additional effect on the bank's earnings and net interest margins because the bank has already made 100% provisioning for the entire amount. In accordance with SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, the bank has also reported the issue to the Reserve Bank of India (RBI). Since FY 2022–2023, Future Enterprises Ltd. has been subject to the Corporate Insolvency Resolution Process (CIRP), which is overseen by the National Company Law Tribunal (NCLT).

Unlike Future Retail, which ran the front-end stores, Future Enterprises was designed to hold the group’s physical assets, manufacturing infrastructure, and critical investments. The company owned the back-end supply chain, logistics frameworks, textile manufacturing facilities, and valuable joint-venture stakes in prominent insurance businesses, specifically Future Generali India Life and General Insurance.

The debt in this account was heavily tied to the group’s massive ₹24,713-crore restructuring package announced in August 2020. Future Enterprises was scheduled to absorb 19 other group entities operating across retail, wholesale, and warehousing operations, before transferring the consolidated retail infrastructure over to Reliance Retail. When the transaction ultimately collapsed in April 2022 due to lack of secured lender support, the underlying debt structures became unsustainable, pushing the account into a hard default.

The path to this fraud classification was driven by exhaustive forensic scrutiny:

Following the default, the consortium of lenders led by Central Bank of India appointed forensic auditor J C Kabra & Associates. This audit followed a Ministry of Finance directive mandating detailed transactional reviews for stressed loan exposures exceeding ₹50 crore.

Concurrently, market regulator SEBI initiated separate forensic audits examining the company’s financial records and high-value Related Party Transactions (RPT) exchanged with sister affiliates like Future Retail, Future Consumer, and Future Supply Chain.

Under RBI guidelines, a commercial bank classifies an NPA account as fraud when independent audits confirm systemic anomalies. These include the misappropriation of funds, criminal breach of trust, manipulation of books of accounts, or routing funds through fictitious/unauthorized third-party entities.

Future Enterprises has been operating under the Corporate Insolvency Resolution Process (CIRP) since 2023. While Bank of India has safely insulated its balance sheet by taking a 100% provision on the ₹575.40 crore, any recovery of this capital now depends on the liquidation of FEL’s remaining investments. Most notably, the company’s premium insurance assets are moving through resolution, with the Central Bank of India emerging as the successful bidder to acquire FEL’s remaining stakes in the Future Generali ventures.

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UFBU Seeks Review of PLI Scheme for Bank Officers, Demands Fair Incentives for All Employees

The United Forum of Bank Unions (UFBU) has urged the Indian Banks’ Association (IBA) to review the Performance Linked Incentive (PLI) scheme for bank officers, highlighting concerns over fairness, uniformity and the exclusion of a section of senior officers from incentive payments.

In a letter dated 9 October 2026, addressed to the Chief Executive of the Indian Banks’ Association, Mumbai, UFBU requested an early meeting to discuss modifications to the revised PLI formula and resolve the matter through mutual consultation.

UFBU Raises Concerns Over the Revised PLI Scheme

According to the letter, the Government advised banks in November 2024 regarding the revised PLI scheme applicable to officers in Scale IV and above. Since then, UFBU has consistently raised objections with the IBA on the following grounds:

• Bilateral discussions: Any change or modification to the scheme should be discussed bilaterally with the unions and associations.

• Collective performance: The fundamental principle of PLI should remain linked to the collective performance of the bank.

• Uniformity: The incentive norms should be uniform rather than creating disparities among officers.

UFBU has welcomed the decision to initiate discussions with the IBA on proposing modifications to the scheme to address the concerns raised by the unions and associations.

20% of Senior Officers Reportedly Received No PLI

One of the major concerns highlighted in the letter is that the revised PLI scheme for officers in Scale IV to Scale VIII for the financial year 2024–25 has already been implemented, and higher incentive amounts have been disbursed to certain officers at a substantial cost.

However, UFBU points out that approximately 20% of officers in Scale IV to Scale VIII have not received any PLI.

The forum argues that these officers have also contributed to the overall performance of their respective banks. Therefore, excluding them from incentive payments raises questions about fairness and the principle of collective achievement.

UFBU Seeks Review of PLI for 2024–25

Pending discussions on modifications to the scheme for 2025–26 and subsequent years, UFBU has requested a review of the PLI already paid for 2024–25.

The demand covers:

• A review of PLI payments made to award staff and officers up to Scale III.

• A review of officers in Scale IV to Scale VIII who did not receive any PLI.

• Consideration of the contribution made by all employees towards the bank’s overall performance.

• Protection of the principles of equity, fairness and uniformity under the existing Bipartite Settlement/Joint Note framework.

Demand for an Early Meeting with IBA

UFBU has requested the IBA to arrange a meeting at the earliest so that the issues can be discussed and resolved amicably and mutually.

The letter has been signed by representatives of major bank unions, including AIBEA, AIBOC, NCBE, AIBOA and BEFI, along with other UFBU constituents.

The PLI issue has once again brought the focus on how performance incentives should be distributed in the banking sector. UFBU's position is that incentives should reflect the collective contribution of employees and follow transparent, fair and uniform principles.

The next step will be the discussions between UFBU and the IBA and whether the concerns regarding officers who received no PLI, along with the requested review of payments for 2024–25, will be addressed.

Stay tuned to Latest Bank Update for the latest developments on banking news, employee issues, PLI, wage-related matters and important updates from the banking sector.

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One of the Unit of Bank of India Officers Association(BOIOA) Announces to pay Rs 2,600 as Gratitude Amount to Members

A ₹2,600 reward has been announced by the Bank of India Officers’ Association (BOIOA), Delhi Unit, for its members who supported the organization during the recent agitation over 5-Day Banking and other unfulfilled demands. The General Secretary of BOIOA Delhi Unit stated in a letter dated October 8, 2026, that members were understandably dissatisfied with the postponement of the strike called by the United Forum of Bank Unions (UFBU). The demand for 5-Day Banking and other unresolved issues were the reasons behind the planned strike. Additionally, the previous agitation program was canceled.

The Delhi Unit said that it had also sought clarification from AIBOC/UFBU regarding the reason of strike deferment, but till now UFBU has not explained the reason of strike deferment.

The association appreciated the trust, commitment and support shown by its members during the difficult period. It said that members demonstrated courage, discipline and a strong sense of responsibility, which reflected the spirit of unity, commitment and organisational solidarity among its members.

The Executive Committee of BOIOA Delhi Unit, in its meeting held on October 8, 2026, has decided to provide a gratitude amount of ₹2,600 to each eligible member, except the office bearers of the Delhi Unit. The amount is being given as a token of appreciation to members who remained firm in their support for the organisation and the Delhi Unit during the struggle.

This amount is being paid as the bank employees were called to work on Sunday – 27 September 2026. The Government had ordered to open all banks on 27 September for convenience of customers, as strike was scheduled from 28 to 30 September 2026.

The association said that the amount cannot compensate for the support, commitment and sacrifice made by its members, but it is a humble gesture to recognise their contribution and loyalty to the organisation.

BOIOA Delhi Unit also said that although the strike has been deferred, its struggle and spirit remain undeterred. The association assured members that it would continue to protect their interests, rights and dignity and would raise their collective voice before the concerned authorities and responsible forums.

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Compensation to Officers for working on 27th Sep,2026

 

The Indian Banks' Association (IBA) has been asked by the United Forum of Bank Unions (UFBU) to compensate officials who worked on Sunday, September 27, 2026, with one day's salary. IBA has consented to accept this demand and bring the matter up for approval at its upcoming Managing Committee meeting, according to UFBU.

Officers who reported for duty on September 27, a Sunday and holiday, are the subject of the demand. For the officers who worked on that day, the bank unions are requesting remuneration equal to one day's compensation.

The Indian government ordered banks to stay open on Sunday, September 27, 2026, for the convenience of customers, despite the proposal that the three-day strike take place from September 28 to September 30, 2026.

Bank employees across India had to report to work on Sunday. Normally, officers who work on a Sunday receive ₹2,000 as compensation, while bank clerks are paid an amount equal to twice their one-day salary.

But bank employees demanded that they should be paid their normal one-day salary for working on that day.

UFBU said it was hopeful that the issue would be taken up in the forthcoming Managing Committee meeting and receive the necessary approval. After approval, the member banks of the IBA can be advised to make the payment to the eligible officers.

The letter was jointly signed by representatives of the major bank unions under the UFBU, including AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF and INBOC.

The development is significant for bank employees who were required to work on September 27 despite it being a Sunday holiday. However, the letter indicates that the payment is still subject to approval by the IBA Managing Committee.

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Thieves Break Into Bank of India(BOI) Branch , Escape Without Stealing Money

Thieves committed a daring crime in the safe zone of the district Saraikela-Kharsawan in Jharkhand.

At midnight on Friday, thieves broke into the Bank of India branch at the district headquarters, which is directly behind the offices of the Superintendent of Police (SP) and Deputy Commissioner (DC).

The incident happened on Friday nite at around 12:30 a.m. Using a rod, two robbers gained access to the bank's main grill. CCTV footage shows that one of the robbers had covered his face with a vest and was only wearing his underwear. The second thief had a vest covering his face and was dressed in shorts. The robbers entered the bank and made an unsuccessful effort to crack the lock on the front cupboard.

The two thieves heard the sound of people moving outside the bank and fled from the bank. The two thieves remained inside the bank for about half an hour, then fled the scene without stealing anything. On Saturday morning, when local villagers noticed the lock on the bank’s main grill was broken, they immediately informed the Saraikela police and the bank manager.

People have raised questions over the security of Bank. This bank branch had no security guards. The bank management had left the security of lakhs of rupees to just two CCTV cameras.

Bank should improve the safety of its branches. The cases of Bank robbery are increasing day by day.

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Fire breaks out at Bank Of India(BOI) Office, brought under control

 

A major fire broke out on the sixth floor of the Bank of India building at Pune’s Shagun Chowk on Monday morning, damaging office equipment, electrical wiring and other material. No one was injured in the incident, fire brigade officials said.

The Pune Fire Brigade control room received a call about the fire at around 10.11 am, following which seven fire tenders and three water tankers were rushed to the spot from the Central, Kasba, Erandwane, Naidu and Kondhwa fire stations.

Fire brigade personnel found that the fire had broken out in an approximately 80-by-80-foot hall on the sixth floor of the RCC building located on the busy Laxmi Road. The building had been evacuated immediately after the fire was detected.

The hall had been divided into four offices using plywood partitions. A battery backup room was also located in the premises. According to the Fire Brigade, computers, tables, chairs, air-conditioners, electrical wiring, batteries, printers, photocopying machines and other office material were extensively damaged in the fire.

The firefighters assessed the risk posed by the fire, particularly given the busy location and the presence of adjoining buildings. They used hose lines, breathing apparatus, ropes, and exhaust blowers to contain the fire and prevent it from spreading to other parts and floors of the building or neighbouring structures.

It took the fire brigade nearly an hour to bring the fire under control. According to security personnel present at the building, the fire broke out in an air-conditioner in an office on the sixth floor. A security guard initially tried to extinguish the fire using a fire extinguisher. However, after realising that the fire could not be brought under control, the fire brigade was alerted.

The fire brigade said there was no permanent fire-fighting installation at the premises. However, fire extinguishers, a fire alarm system and a detection system were found at the site. Personnel from the Pune Municipal Corporation’s disaster management and building departments, police and the Maharashtra State Electricity Distribution Company Limited were also present at the site.

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UFBU STRIKE DEFERRED — UNDERSTANDINGS REACHED - A FORWARD MOVEMENT ON FIVE-DAY BANKING, PLI AND RESIDUAL ISSUES

 

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5-Day Banking Update: IBA–UFBU Meeting Held on 27 September 2026; Proposed Strike Action Deferred

The United Forum of Bank Unions (UFBU) and the Indian Banks’ Association (IBA) held a meeting on 27 September 2026 to discuss key issues concerning bank employees and officers, including the long-pending demand for 5-day banking, the Performance Linked Incentive (PLI) scheme and other outstanding demands.

According to UFBU Circular No. 2026/32 dated 27 September 2026, the meeting concluded with decisions to initiate further discussions on the pending issues. In view of these developments, UFBU has agreed to defer its proposed agitation programmes and strike actions.

Key Outcomes of the IBA–UFBU Meeting

1. High-Level Committee on 5-Day Banking

The implementation of 5-day banking was a key issue raised by the UFBU leadership. The unions emphasised that their demands should be addressed on a priority basis, particularly the implementation of a five-day working week in banks.

It was decided that a high-level committee comprising representatives of IBA and UFBU would be formed immediately to deliberate on declaring the remaining Saturdays as holidays.

The committee will examine possible alternatives, consult all stakeholders and work towards a mutually acceptable solution, keeping customers’ interests in view.

2. Discussions on the PLI Scheme

The meeting also discussed the Performance Linked Incentive (PLI) scheme applicable to Scale IV and above officers.

It was agreed that discussions could begin with IBA to propose modifications to the Government in the existing scheme, taking into account the observations and concerns raised by the unions and associations.

3. Resolution of Other Pending Issues

The meeting further agreed that the residual issues listed in the minutes dated 8 March 2024 would be discussed between the parties for an expedited resolution.

Both sides acknowledged the contribution of bank employees and officers to the growth of public sector banks and the wider banking industry.

4. Proposed Strike and Agitation Deferred

In view of the decisions taken during the meeting and the proposed discussions on outstanding demands, UFBU has agreed to defer the proposed agitation programmes and strike actions.

The development indicates that further dialogue between IBA and UFBU will take place to resolve the pending issues.

Who Attended the Meeting?

The IBA Negotiating Committee was represented by its Chairman, Shri Rajneesh Karnatak, MD & CEO of Bank of India, along with other senior representatives from Bank of India, Punjab National Bank, Indian Bank and State Bank of India.

UFBU was represented by leaders from its constituent organisations, including AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF.

What Does This Mean for Bank Employees?

The formation of a high-level committee on 5-day banking is an important development in the ongoing discussions between IBA and UFBU. However, the final implementation of 5-day banking has not yet been announced.

Bank employees and officers will be looking forward to the committee’s discussions and a concrete decision on the remaining Saturdays as holidays.

The outcome of the upcoming discussions will be significant for employees, customers and the banking sector as a whole.

The IBA–UFBU meeting has opened the way for further negotiations on 5-day banking, PLI reforms and other pending demands. UFBU has deferred the proposed strike action, and employees will now await the outcome of the discussions and the next steps towards implementation of 5-day banking.

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Government never agreed to 5-day work week for banks, facts being twisted: Official sources

A finance ministry official stated prior to the United Forum of Bank Unions' (UFBU) three-day strike scheduled for September 28–30 that the government never agreed to a five-day workweek for banks because this crucial demand has not been fulfilled.

"During the most recent pay discussions, the five-day workweek was never agreed upon. It was never used as a bargaining chip. The official, who wished to remain anonymous, stated, "They (bank unions) are distorting the facts."

In a letter dated September 22, the All India Bank Officers’ Confederation said there had been no response to this demand “which was agreed and signed in March, 2024 under the last wage revision settlement”. The letter added that officials from the Indian Banks’ Association (IBA) had informed union representatives that the issue of five-days banking is “under consideration by the Government”.

Currently, bank branches are open on the first, third, and fifth Saturdays of every month.

IBA has accordingly recommended to the Government. The due changes in the working hours, will be effective after approval by the Government of India and necessary clearances from Government / Reserve Bank of India,” the Settlement said.

However, the finance ministry official asserted the government had not agreed to a five-day work week, although a lot of other concessions were made.

“The IBA didn’t want to go beyond an 11% hike in the wage negotiations, but the government intervened and a hike of 17% was announced. Even on the issue of family pension, the IBA was not keen but the government said that post-retirement, they will be on the other side, and they should not fight it,” the source said, adding that the performance-linked incentive (PLI) scheme had been kept on hold for the current financial year following opposition.

Announced in November 2024, the PLI scheme for public sector banks’ employees faced intense pushback and was called “discriminatory” because it was only for Scale 4 officers and above. According to bank unions, the scheme is divisive, demotivating, and distortionary.

With the three-day strike that begins on Monday in mind, the government on Wednesday said public sector banks and regional rural banks will function as normal on September 27, Sunday. The decision, the Ministry of Finance said, was being taken to ensure “genuine banking needs” of the public are not hindered for an extended period.

With September 26 being a non-working Saturday for banks, the three-day strike would have led to banks being shut for five days in a row.

The RBI has given its approval for all bank branches, offices, ATM-linked branches, and currency chests to remain “fully operational” on Sunday, the finance ministry further said on Wednesday.

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