Finance Minister Nirmala Sitharaman on Friday rejected Leader of Opposition Rahul Gandhi’s charge over the sale of IDBI Bank, saying, “All due process
has been followed in the IDBI Bank strategic restructuring, and we have already clarified this yesterday.” Gandhi had earlier on Friday criticised the Centre’s decision to sell IDBI Bank and expressed solidarity with the bank’s employees. Responding to Rahul Gandhi’s charges, the Finance Minister said, “We all know how @INCIndia has used Banks and financial institutions as personal entities and pressured bank employees to extend loans at their whim, bypassing prudent lending norms.” She listed several instances. “In 1957, Haridas Mundra got money from LIC due to influence by the Congress leaders,” she wrote, adding, “In 1976, Indira Gandhi’s government removed SBI Chairman R.K. Talwar after he refused political pressure to relax lending conditions for a company linked to Sanjay Gandhi’s circle.” She also named Sanjay Gandhi and the Central Bank of India over Maruti loans, former Minister of State for Finance B. Janardhana Poojary, and UPA minister Pawan Kumar Bansal and Canara Bank. “The IDBI Bank was handed over to us in poor shape, as IDBI itself was forced to lend to large business groups with close connections to @INCIndia leaders such as Videocon, Winsome, ABG Shipyard, Kingfisher, etc.,” she said. “The NDA govt led by Hon’ble PM Shri @narendramodi revived the IDBI bank through professionalism, prudence and recapitalisation of more than Rs 25,000 crores. The IDBI Bank is now poised for its next phase of growth,” she added.
We all know how @INCIndia has used Banks and financial institutions as personal entities and pressured bank employees to extend loans at their whim, bypassing prudent lending norms. Let me list a few instances. - In 1957, Haridas Mundra got money from LIC due to influence by the Congress leaders. - In 1976, Indira Gandhi's government removed SBI Chairman R.K. Talwar after he refused political pressure to relax lending conditions for a company linked to Sanjay Gandhi's circle.- Sanjay Gandhi pressured the Central Bank of India over loans to Maruti. - B. Janardhana Poojary, MoS Finance under Indira Gandhi and Rajiv Gandhi — pressured bank employees to issue loans in the 1980s. - Pawan Kumar Bansal, as a minister in the UPA, pressured Canara Bank to give loans to his family-linked businesses. The IDBI Bank was handed over to us in poor shape, as IDBI itself was forced to lend to large business groups with close connections to @INCIndia leaders such as Videocon, Winsome, ABG Shipyard, Kingfisher, etc. These turned into bad loans, causing huge losses for IDBI Bank, which we recognised. The NDA govt led by Hon'ble PM Shri @narendramodi revived the IDBI bank through professionalism, prudence and recapitalisation of more than Rs 25,000 crores. The IDBI Bank is now poised for its next phase of growth.All due process has been followed in the IDBI Bank strategic restructuring, and we have already clarified this yesterday. Check this: https://t.co/EjAOziADyf Many more instances of blatant scams and economic mismanagement have been covered in the White Paper on the Indian Economy released in February 2024. It remains relevant even now. Read here: https://t.co/MojSe36Zb2Your lies with respect to Rafale had failed and were exposed. You had to apologise. The same will happen here.Congress-era banking had a phonebook for the powerful and a rulebook for the common citizens.The era of 'connection and setting banking' is over. Common people now have easy access to loans, and employees are not under pressure to extend loans over the phone calls.
— Nirmala Sitharaman (@nsitharaman) October 30, 2026
“Your lies with respect to Rafale had failed and were exposed. You had to apologise. The same will happen here,” she said. “Congress-era banking had a phonebook for the powerful and a rulebook for the common citizens. The era of ‘connection and setting banking’ is over.”
Rahul Gandhi, quoting a letter to IDBI Bank employees on October 29, posted on X, “ During Congress's time, IDBI was established—to build the nation's industry. During Modi's time, first the bidding was seen, then the price was set. During Congress's time, banks were being created. During Modi's time, they are being sold. I stand with the employees of IDBI Bank.”
कांग्रेस के समय में IDBI बना - देश का उद्योग खड़ा करने के लिए।मोदी के समय में पहले बोली देखी गई, फिर दाम तय हुआ।कांग्रेस के time पे बैंक बनते थे। मोदी के time में बिकते हैं।मैं IDBI बैंक के कर्मचारियों के साथ खड़ा हूँ। https://t.co/uLT7mWTYyr
— Rahul Gandhi (@RahulGandhi) October 30, 2026
The Ministry's Clarification
On Thursday, the Finance Ministry defended the bidding process. “The reserve price was neither decreased nor increased, and the first round itself became functus officio after the initial bids were not approved,” it said. The ministry said the revised process raised the discovered bid price by Rs 3,917 crore, and that the tax indemnity liability was limited to Rs 627 crore.
The Deal
On October 14, the Union Cabinet approved the sale of a 60.72 per cent stake in IDBI Bank for Rs 52,878 crore to a subsidiary of Canada’s Fairfax Financial Holdings. The government and LIC will keep 15 per cent and 19 per cent, respectively. IDBI Bank’s net profit rose 27 per cent to Rs 9,513 crore in 2025-26, from Rs 7,515 crore the previous year.
Sitharaman has termed the proposed transaction a "strategic restructuring", clarifying that it should not be viewed as strategic disinvestment.
The United Forum of IDBI Officers and Employees has issued a strike notice opposing the sale, and staff plan a two-day nationwide hunger strike on November 2 and 3.
