IDBI Bank Stake Sale Sparks Row: Nirmala Sitharaman Hits Back at Rahul Gandhi

The proposed sale of the majority stake in IDBI Bank held by the Central Government and the Life Insurance Corporation of India (LIC) to Canada's Fairfax Financial Holdings has triggered a political debate. Congress leader and Leader of Opposition in the Lok Sabha Rahul Gandhi has opposed the move and extended his support to the bank employees. He criticised the Centre, arguing that selling a profitable bank was not appropriate. Responding to his remarks, Union Finance Minister Nirmala Sitharaman accused the previous Congress government of pressuring public sector banks to extend loans to politically influential business groups without following proper norms.

Sitharaman stated that IDBI Bank had suffered significant losses due to mounting bad loans during the Congress regime. She said the NDA government had mobilised more than ₹25,000 crore in capital to revive the bank and bring it back on track. She also maintained that all prescribed procedures were being followed in the restructuring process. On October 14, the Union Cabinet approved the proposed sale of the government's and LIC's combined 60.72 per cent stake in IDBI Bank to Fairfax Financial Holdings for ₹52,878 crore. Meanwhile, the United Forum of IDBI Officers and Employees has opposed the proposal, demanding an immediate halt to the sale and a comprehensive review under parliamentary supervision.