New Delhi, Oct. 15 -- The government has assured that IDBI Bank employees' service conditions and pension benefits will be fully protected following the lender's Rs.52,878 crore strategic disinvestment, with a dedicated pension fund already set aside to safeguard retirees' interests, Arunish Chawla, secretary of the department of investment and public asset management (DIPAM), told Mint on Thursday.

The assurance comes amid bank unions' opposition to the proposed privatization of IDBI Bank, in which the government and Life Insurance Corporation of India (LIC) are selling a combined 60.72% stake to Fairfax Financial Holdings. The Cabinet Committee on Economic Affairs (CCEA) approved the divestment on Wednesday.

"The service conditions of...