A fresh political confrontation has emerged between Congress leader Rahul Gandhi and Union Finance Minister Nirmala Sitharaman over the Centre’s decision to sell its majority stake in IDBI Bank. The exchange has brought the proposed bank privatisation and employees’ concerns back into the national political debate.
Rahul Gandhi, Leader of Opposition in the Lok Sabha, has criticised the government’s decision and expressed support for IDBI Bank employees opposing the proposed sale.
Rahul Gandhi Questions Centre’s Decision
Rahul Gandhi accused the government of selling institutions instead of building them. Drawing a comparison between Congress-era banking initiatives and the current government’s disinvestment policy, he questioned the need to sell IDBI Bank despite its reported profit of around Rs 9,000 crore in the previous financial year.
He also said the government had not provided a satisfactory explanation for the proposed transaction when he raised the issue in Parliament.
Nirmala Sitharaman Hits Back at Congress
Responding to Gandhi’s criticism, Finance Minister Nirmala Sitharaman accused previous Congress governments of exerting political influence over banks and pressuring financial institutions to provide loans to selected business groups.
She alleged that questionable lending practices during the Congress-led UPA period contributed to IDBI Bank’s financial difficulties.
Sitharaman maintained that the NDA government had improved the bank’s financial position through professional management and recapitalisation exceeding Rs 25,000 crore. She also defended the proposed transaction, stating that the required procedures had been followed.
Centre Approves Stake Sale to Fairfax
The Union Cabinet approved the sale of a combined 60.72% stake in IDBI Bank to a subsidiary of Canada’s Fairfax Financial Holdings for approximately Rs 52,878 crore on October 14, 2026.
The transaction involves a 30.48% stake held by the Central government and a 30.24% stake owned by the Life Insurance Corporation of India (LIC).
The government has described the transaction as a major step in the strategic restructuring of the lender.
IDBI Bank Employees Announce Strike
The dispute has also drawn attention to the concerns of IDBI Bank employees and trade unions. Bank unions have called for a nationwide strike on November 2 and 3 to oppose the proposed stake sale.
Rahul Gandhi has extended his support to the protesting employees, stating that he stands with them in their opposition to the government’s decision.
Political Disagreement Over Banking Privatisation Continues
The latest exchange marks another public disagreement between Rahul Gandhi and Nirmala Sitharaman following their earlier confrontation over developments within the Tata Group.
With the proposed IDBI Bank transaction, employee protests and competing claims over the bank’s financial history, the issue is likely to remain part of the political debate surrounding public-sector institutions and banking reforms.
