IDBI Bank divestment: Finance Minister Nirmala Sitharaman says Congress, UPA govt used banks, financial institutions as personal entities

Leader of the Opposition in the Lok Sabha, Rahul Gandhi, on Friday (October 30, 2026) questioned the government’s decision to sell a majority stake in IDBI Bank to Canadian firm Fairfax Financial Holdings, prompting Finance Minister Nirmala Sitharaman to respond by accusing the Congress-led United Progressive Alliance (UPA) government of treating banks and financial institutions as “personal entities”.

In an open letter to IDBI Bank employees, Mr. Gandhi expressed solidarity with their opposition to the proposed sale, arguing that public banks were not assets to be sold but “tools to build the nation”. He said the bank had turned profitable through the efforts of its employees, earning over ₹9,000 crore last year after incurring losses seven years ago.

He recalled that the government had assured Parliament in 2003 that it would retain at least 50% ownership of IDBI. “That promise may not be written into law, but a promise made to Parliament is a promise made to the people of India,” Mr. Gandhi said.

The Opposition leader questioned how employees and depositors would be protected under private ownership. He said the sale would end reservations for Scheduled Castes, Scheduled Tribes, and Other Backward Classes in the bank.

Responding to his criticism, Ms. Sitharaman alleged that the Congress-led government had pressured bank employees to extend loans to politically connected business groups, bypassing prudent lending norms. Citing the removal of SBI chairman R.K. Talwar in 1976 during Indira Gandhi’s tenure, she said he had been removed after allegedly refusing to relax lending norms for a company linked to Sanjay Gandhi.

She alleged that IDBI Bank was forced to lend to business groups with close links to Congress leaders, including Videocon, Winsome, ABG Shipyard, and Kingfisher, resulting in bad loans. The NDA government, she said, revived the bank through recapitalisation of more than ₹25,000 crore and professional management.

The government has approved the sale of a 60.72% stake in IDBI Bank to Fairfax for about ₹53,000 crore. Ms. Sitharaman maintained that all due process had been followed and accused Mr. Gandhi of repeating allegations that had earlier been exposed in the Rafale case.