Political Clash Erupts Over IDBI Banks Strategic Disinvestment
Finance Minister Nirmala Sitharaman counters Rahul Gandhis claims on IDBI Banks disinvestment amid rising political tensions.
New Delhi, October 30 (Daily Kiran) : The political landscape in New Delhi is heating up over the strategic disinvestment of IDBI Bank. Opposition leader Rahul Gandhi criticized the government’s decision to sell its stake in the bank, asserting that the Congress party established institutions like IDBI for the country’s industrial growth. He accused the current administration of selling off profitable public sector banks.
In response, Finance Minister Nirmala Sitharaman accused the Congress party of using banks and financial institutions for political gain. She stated that the NDA government has successfully revived IDBI Bank, which had been in distress.
Sitharaman addressed Gandhi’s allegations, claiming that during Congress’s tenure, banks were often pressured to approve loans under political influence. She referenced historical instances where loans were granted to large business groups with political connections, which later turned into non-performing assets (NPAs).
On social media, she emphasized that the NDA government has revitalized IDBI Bank through professional management and prudent policies, including over ₹25,000 crores in recapitalization. She asserted that the bank is now poised for its next growth phase and that the disinvestment process adheres to established regulations.
Sitharaman also highlighted the end of “phone banking” practices, stating that the current banking system allows easier access to loans for the general public. She noted that the days of political pressure on bank employees to approve loans are over.
Earlier, in a letter to IDBI Bank employees, Gandhi expressed concern over the sale of a profitable bank. He pointed out that employees had asked him why the bank was being sold when it was making profits. He claimed that IDBI Bank, which was once in the red, is now generating profits exceeding ₹9,000 crores, crediting this turnaround to the bank’s staff.
Gandhi warned that post-privatization, the proposed sale could reduce government and LIC’s stake from about 95% to just 34%, potentially impacting service conditions for employees, especially for those from Scheduled Castes, Scheduled Tribes, and Other Backward Classes. He reiterated Congress’s belief in a strong public sector, stating that public banks are not merely assets but vital tools for nation-building.
Tensions continue to rise as both parties lay out their positions on this crucial economic issue.
