IDBI Bank Privatisation | New Delhi, Oct. 30: Union Finance Minister Nirmala Sitharaman has strongly countered Congress leader Rahul Gandhi’s criticism of the proposed IDBI Bank privatisation, defending the Centre’s strategic disinvestment plan. She rejected claims that the move would harm bank employees and the country, and accused the Congress of weakening public sector banks through political interference.
Sitharaman alleged that loans worth thousands of crores were sanctioned to companies such as Kingfisher, Videocon and ABG Shipyards during Congress-led governments, with political support.
Nirmala Sitharaman Defends IDBI Bank Privatisation
The Finance Minister alleged that political interference in banking had continued for decades, referring to the 1957 Mundra scam and the UPA government’s tenure.
She also cited the removal of former State Bank of India Chairman R.K. Talwar in 1976, claiming he faced action for extending loans to associates of Sanjay Gandhi.
Sitharaman said IDBI Bank suffered significant losses because of loans allegedly sanctioned under pressure from Congress leaders. She added that the NDA government had supported the bank by providing capital of Rs. 25,000 crore.
Centre Defends IDBI Stake Sale Process
Sitharaman maintained that the IDBI stake sale process was conducted transparently. She said the bank’s valuation increased by Rs. 3,917 crore during the second round of bidding.
The Union Cabinet recently approved the sale of a 60.72 per cent stake in IDBI Bank to Fairfax for Rs. 52,878 crore, according to the statement.
Under the proposed transaction, the Centre will sell its 30.48 per cent stake, while the Life Insurance Corporation of India (LIC) will divest 30.24 per cent.
The Finance Minister also expressed confidence that Rahul Gandhi’s allegations regarding the IDBI deal would be addressed, comparing the criticism to earlier political allegations surrounding the Rafale deal.
The proposed privatisation has triggered a political exchange between the Centre and the Congress, with both sides presenting contrasting views on the future of public sector banking.
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