Nirmala Sitharaman Blames Congress for IDBI Bank Crisis
Union Finance Minister Nirmala Sitharaman has strongly criticised Congress leader Rahul Gandhi over his opposition to the sale of IDBI Bank, accusing previous Congress governments of allowing politically connected businesses to accumulate substantial bad loans. In a statement on October 30, 2026, Sitharaman defended the Narendra Modi government’s decision to divest its stake in the bank, arguing that the institution had been financially weakened before the NDA assumed office.
Nirmala Sitharaman Blames Congress for IDBI Bad Loans
Sitharaman alleged that loans extended to companies including Videocon, Winsome, ABG Shipyard and Kingfisher had contributed to IDBI Bank’s financial difficulties.
She accused earlier Congress governments of political interference in banking decisions and claimed that influential individuals had pressured financial institutions to extend questionable loans.
The Finance Minister maintained that the NDA government subsequently restored the bank’s financial health through professional management, improved lending practices and recapitalisation exceeding Rs 25,000 crore.
Rahul Gandhi Opposes IDBI Bank Sale to Fairfax
The controversy followed Rahul Gandhi’s criticism of the government’s decision to transfer a controlling stake in IDBI Bank to Canada’s Fairfax Financial Holdings.
Gandhi argued that IDBI was established during Congress rule to support industrial development and questioned the decision to sell a bank that had returned to profitability.
He also expressed solidarity with employees opposing privatisation, raising concerns about job security and institutional protections.
The government has defended the transaction as part of its broader disinvestment programme.
IDBI Bank Privatisation Sparks Political Dispute
The Union Cabinet approved the sale of a 60.72% controlling stake in IDBI Bank for approximately Rs 52,878 crore in October 2026.
Sitharaman argued that the bank’s recovery demonstrated improvements in governance and financial discipline under the present administration.
She also accused Congress leaders of treating public sector banks as instruments of political influence, allegations that remain politically contested.
The disagreement has renewed debate over public sector bank ownership, employee protections and the government’s approach to privatisation.
