IDBI Bank Sale: Sitharaman Slams Congress, Gandhi Raises Alarm

The proposed strategic sale of government stake in IDBI Bank has become the latest flashpoint between the Congress and the Union government.

Opposition leader Rahul Gandhi has questioned the move to sell a part of the government's holding in IDBI Bank. In a post on the social media platform X, he said the Congress had established IDBI and similar institutions to build the country's industrial base. He argued that the current administration was selling public sector banks that were now generating profits.

Union Finance Minister Nirmala Sitharaman responded by accusing the Congress of using banks and financial institutions for political gain. She said the NDA government had turned IDBI Bank around after it had fallen into crisis.

In her reply to Gandhi's remarks, Sitharaman listed several earlier episodes in which, she said, banks were pressured to sanction loans during Congress rule. She alleged that IDBI Bank was also compelled to lend to large business houses with political links, and that these loans later became non-performing assets.

In a post on X, she said the NDA government had revived the bank through professional management, prudent policies and capital infusion of more than Rs 25,000 crore. She stated that IDBI Bank was now ready for its next phase of development and that its strategic restructuring was being carried out according to prescribed rules.

She also said the Congress's questions were not based on facts and that the government had already explained its position.

The finance minister further said that the practice of “phone banking” and loan approvals based on influence had come to an end. She added that ordinary people now have easier access to credit and that the practice of pressuring bank staff to approve loans has been stopped.

Earlier, Gandhi had written a letter to IDBI Bank employees. He said employees he had met at Parliament House last year asked why the bank was being sold when it was profitable.

In an X post, he said IDBI Bank, which was loss-making seven years ago, is now earning profit of over Rs 9,000 crore and credited employees for the change.

Gandhi claimed that the government and LIC together hold nearly 95 per cent of the bank, and this would fall to 34 per cent after the proposed sale.

He also expressed fear that privatisation could weaken reservation provisions for SC, ST and OBC communities and affect employees' service terms. He stressed that the Congress supports a strong public sector and sees public banks as instruments of nation-building, not just assets.