India's banking sector is navigating a remarkable convergence of events this week. As the government pushes forward with the strategic disinvestment of IDBI Bank, bank employees are preparing for a nationwide strike that threatens to disrupt services for millions. In response, the Reserve Bank of India has taken the unusual step of directing banks to remain open on a Sunday — a move designed to cushion the impact of what could effectively become a five-day closure.
Why Is the Government Selling 60.72% of IDBI Bank?
The story begins with a simple fact: the Indian government and the Life Insurance Corporation of India together own 94.71% of IDBI Bank. That level of state ownership was never meant to be permanent. The strategic disinvestment of IDBI Bank has been in the works since October 2022, when the government floated an Expression of Interest to sell a controlling stake.
The plan involves the government selling its 30.48% holding and LIC offloading 30.24% — together totalling 60.72% of the bank. The government owns 45.48% directly, while LIC holds 49.24%.
Two bidders have emerged as frontrunners: Fairfax Financial Holdings, backed by billionaire investor Prem Watsa, and Dubai-based Emirates NBD. Neither is a stranger to Indian banking. Emirates NBD recently acquired a majority stake in RBL Bank, while Fairfax already holds 40% of CSB Bank. Both have cleared security checks from the Ministry of Home Affairs and received "Fit and Proper" assessments from the RBI.
This is actually the second round of bidding. When financial bids arrived in February 2026, they fell below the reserve price set by the Inter-ministerial group, forcing the government to pause the process. Revised bids came in on 13 July 2026, and government sources now say the evaluation is "moving at a steady pace".
The story begins with a simple fact: the Indian government and the Life Insurance Corporation of India together own 94.71% of IDBI Bank. That level of state ownership was never meant to be permanent. The strategic disinvestment of IDBI Bank has been in the works since October 2022, when the government floated an Expression of Interest to sell a controlling stake.
The plan involves the government selling its 30.48% holding and LIC offloading 30.24% — together totalling 60.72% of the bank. The government owns 45.48% directly, while LIC holds 49.24%.
Two bidders have emerged as frontrunners: Fairfax Financial Holdings, backed by billionaire investor Prem Watsa, and Dubai-based Emirates NBD. Neither is a stranger to Indian banking. Emirates NBD recently acquired a majority stake in RBL Bank, while Fairfax already holds 40% of CSB Bank. Both have cleared security checks from the Ministry of Home Affairs and received "Fit and Proper" assessments from the RBI.
This is actually the second round of bidding. When financial bids arrived in February 2026, they fell below the reserve price set by the Inter-ministerial group, forcing the government to pause the process. Revised bids came in on 13 July 2026, and government sources now say the evaluation is "moving at a steady pace".
Banks Open on Sunday, 27 September 2026
The United Forum of Bank Unions — representing over 90% of India's banking workforce — has called a three-day nationwide strike from 28 to 30 September 2026. With Saturday 26 September already a weekend holiday, the strike threatened to leave customers without branch access for five consecutive days.
The government's response was decisive. The Department of Financial Services announced that all Public Sector Banks and Regional Rural Banks would function normally on Sunday, 27 September 2026. The RBI granted approval for branches, offices, ATM-linked branches and Currency Chests to remain fully operational.
"The welfare and convenience of bank customers remains the Government's foremost priority," the ministry stated, adding that it had appealed to unions to defer the strike.
For customers with urgent branch-related work — cash transactions, cheque clearance, document submissions — Sunday represents a critical window. Digital services such as UPI, internet banking and mobile banking are expected to continue, though back-office processes requiring manual intervention could face delays.
The United Forum of Bank Unions — representing over 90% of India's banking workforce — has called a three-day nationwide strike from 28 to 30 September 2026. With Saturday 26 September already a weekend holiday, the strike threatened to leave customers without branch access for five consecutive days.
The government's response was decisive. The Department of Financial Services announced that all Public Sector Banks and Regional Rural Banks would function normally on Sunday, 27 September 2026. The RBI granted approval for branches, offices, ATM-linked branches and Currency Chests to remain fully operational.
"The welfare and convenience of bank customers remains the Government's foremost priority," the ministry stated, adding that it had appealed to unions to defer the strike.
For customers with urgent branch-related work — cash transactions, cheque clearance, document submissions — Sunday represents a critical window. Digital services such as UPI, internet banking and mobile banking are expected to continue, though back-office processes requiring manual intervention could face delays.
What the Strike Is Really About
At the heart of the dispute is a demand that has been simmering for years: the implementation of a five-day banking week. Bank unions argue that a joint note reached in March 2024 already approved the measure, yet it remains unimplemented.
The Performance Linked Incentive scheme has added fuel to the fire. The government has placed the PLI scheme in abeyance for Scale IV officers and above, a move unions view as a breach of trust. Conciliation talks on 22 September failed to produce a breakthrough, with the Indian Banks' Association maintaining that the five-day banking issue remains "under government consideration".
Union representatives have warned that if their demands are not addressed, an indefinite strike could begin from 26 October 2026. For now, the three-day action proceeds as planned.
At the heart of the dispute is a demand that has been simmering for years: the implementation of a five-day banking week. Bank unions argue that a joint note reached in March 2024 already approved the measure, yet it remains unimplemented.
The Performance Linked Incentive scheme has added fuel to the fire. The government has placed the PLI scheme in abeyance for Scale IV officers and above, a move unions view as a breach of trust. Conciliation talks on 22 September failed to produce a breakthrough, with the Indian Banks' Association maintaining that the five-day banking issue remains "under government consideration".
Union representatives have warned that if their demands are not addressed, an indefinite strike could begin from 26 October 2026. For now, the three-day action proceeds as planned.
What This Means for Customers
The practical implications are straightforward. Branch-dependent services — cash deposits and withdrawals, cheque processing, locker access, loan documentation — will face disruption from Monday 28 to Wednesday 30 September. Digital channels remain the recommended alternative, though any transaction requiring manual processing or back-office verification may be delayed.
State Bank of India and other major banks have advised customers to complete time-sensitive branch work before the strike period. The Sunday opening is designed precisely to provide that opportunity.
September 30 also marks the half-yearly closing of bank accounts, a critical date for provisioning, reconciliation and treasury operations. The government has expressed concern that a prolonged disruption could affect these essential financial activities.
The practical implications are straightforward. Branch-dependent services — cash deposits and withdrawals, cheque processing, locker access, loan documentation — will face disruption from Monday 28 to Wednesday 30 September. Digital channels remain the recommended alternative, though any transaction requiring manual processing or back-office verification may be delayed.
State Bank of India and other major banks have advised customers to complete time-sensitive branch work before the strike period. The Sunday opening is designed precisely to provide that opportunity.
September 30 also marks the half-yearly closing of bank accounts, a critical date for provisioning, reconciliation and treasury operations. The government has expressed concern that a prolonged disruption could affect these essential financial activities.
The Bigger Picture
The coincidence of IDBI Bank's privatisation push and the bank strike is not directly related — the disinvestment process has been years in the making, and the strike concerns employee benefits. But together they paint a picture of a banking sector in transition.
For IDBI Bank, the next milestone is the government's evaluation of revised bids. A successful sale would mark one of India's most significant bank privatisations in decades. For bank customers, the immediate priority is simpler: if you need branch services, Sunday 27 September is your best — and possibly only — opportunity before the strike begins.
The coincidence of IDBI Bank's privatisation push and the bank strike is not directly related — the disinvestment process has been years in the making, and the strike concerns employee benefits. But together they paint a picture of a banking sector in transition.
For IDBI Bank, the next milestone is the government's evaluation of revised bids. A successful sale would mark one of India's most significant bank privatisations in decades. For bank customers, the immediate priority is simpler: if you need branch services, Sunday 27 September is your best — and possibly only — opportunity before the strike begins.
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