Former Union Economic Affairs Secretary EAS Sarma has raised strong objections against the ongoing strategic disinvestment of IDBI Bank, warning that the move will inflict severe injustice on employees belonging to Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC). In a formal communication to the Union Finance Ministry, Sarma highlighted that transferring control of the public sector lender to private entities will effectively eliminate constitutional reservation policies that safeguard marginalized communities. He argued that the government’s push for privatization disregards the socio-economic welfare of thousands of bank employees who secured their positions through affirmative action, stripping them of long-term job security and career progression.
Sarma contended that by converting a public institution into a purely commercial, private enterprise, the state is abdicating its constitutional mandate to promote equity and inclusivity within the organized workforce. Private sector employers are not legally bound by the same strict reservation quotas as state-backed institutions, meaning future recruitment cycles would likely exclude a fair representation of weaker sections of society. The former bureaucrat urged the government to halt the sale, arguing that economic restructuring should not come at the expense of social justice and the statutory rights of the bank’s diverse workforce. As the disinvestment process advances, Sarma’s warnings add a critical social dimension to the debate, amplifying concerns from trade unions that privatization could permanently erode equitable employment opportunities within India’s banking sector.
