Congress leader Rahul Gandhi criticised the Modi government over the proposed sale of IDBI Bank, questioning why a profitable institution was being privatised and expressing support for its employees. In a post on X, Gandhi contrasted the Congress's record of establishing banks with the current government's disinvestment policy.
"During Congress's time, banks were being created. During Modi's time, they are being sold," he wrote. "I stand with the employees of IDBI Bank."
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In a letter addressed to employees, Gandhi said a group of bank staff had met him at Parliament House in March last year and asked why the government was selling a bank they had helped make profitable.
Gandhi said he subsequently raised the matter in the Lok Sabha, seeking an explanation for the sale and assurances on safeguards for employees and depositors. He alleged that the government had provided no reason for the decision. He also claimed that the government had decided to sell IDBI Bank to Canadian company Fairfax.
Recalling IDBI's origins as a development bank, Gandhi credited employees with steering the institution through its transition to commercial banking and restoring profitability. "Seven years ago, IDBI was losing money. Last year, it earned a profit of over nine thousand crore rupees. That turnaround is your work," he said.
Gandhi said the government and Life Insurance Corporation of India together owned 95% of the bank and claimed their combined holding would fall to 34% after the sale. He also cited an assurance he said the government had given Parliament in 2003 that it would retain at least 51% ownership of IDBI. "That promise may not be written into law, but a promise made to Parliament is a promise made to the people of India," he said.
Gandhi warned that private ownership would end reservation for Scheduled Caste, Scheduled Tribe and Other Backward Class candidates at the bank. He also argued that employees' service conditions would lose their remaining protection.
Reiterating the Congress's support for a public sector operating alongside private businesses, Gandhi said public banks served a nation-building role. "Public banks are not assets to be sold off, they are tools to build the nation," he said, pledging support for employees' legitimate demands and urging them to remain united.
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