Congress MP Rahul Gandhi has targeted the central government over the privatization of IDBI Bank. He sarcastically said, “Banks were created during the Congress regime, but are sold during Modi’s rule.” He also expressed support for the bank employees’ protest and pledged his support.
New Delhi: Congress MP and Leader of the Opposition in the Lok Sabha, Rahul Gandhi, has targeted the Narendra Modi government over the privatization of IDBI Bank. He alleged that the government first called for bids to purchase the bank and then fixed its price. Rahul Gandhi said that during the Congress regime, banks were created for the country’s industrial development, whereas under the Modi government, public sector banks are being sold. He has pledged his support for IDBI Bank employees.
On Friday, Rahul Gandhi posted on the social media platform X, writing, “IDBI was created during the Congress regime to build the country’s industry.” During Modi’s tenure, bids were first reviewed, then the price was finalized. Banks were created during Congress’s tenure. They are sold during Modi’s tenure. I stand with the employees of IDBI Bank.
Rahul Gandhi writes a letter to IDBI employees
Rahul Gandhi has written a letter addressing the employees of IDBI Bank. In the letter, Rahul Gandhi explained that in March last year, a delegation of bank employees met him in Parliament. The employees questioned why the government was selling the bank he had brought to profit.
According to Rahul Gandhi, “He raised this issue in the Lok Sabha, asking the government why a profitable public sector bank needed to be sold and how the interests of its employees and depositors would be protected. He alleged that the government failed to provide a satisfactory answer to this question. Now, the decision has been made to sell the bank to the Canadian company Fairfax.”
‘The bank went from losses to profits of ₹9,000 crore in 7 years’
Rahul Gandhi, in his letter, highlighted IDBI Bank’s performance, saying it began as a development bank. The subsequent transition to a commercial bank wasn’t easy, but the employees overcame the challenges. He claimed that about seven years ago, IDBI Bank was incurring losses, but last year, the bank earned profits of over ₹9,000 crore. Rahul Gandhi credited the bank’s employees for this turnaround, saying it was the result of their hard work.
Objection raised to the reduction of government stake
The Congress MP also questioned the change in the bank’s ownership. He said that currently, the government and LIC hold approximately 95% of IDBI Bank. After privatization, this stake will be reduced to approximately 34%.
Rahul Gandhi also referred to the promise made in Parliament in 2003, in which the government had pledged to retain at least a 51% stake in IDBI Bank. He said that even if this promise is not enshrined in law, a promise made in Parliament is a promise made to the people of the country. He expressed concern that reservations for SC, ST, and OBC categories could be eliminated after the bank goes into private hands.
He assured IDBI Bank employees that he stands with them in their struggle and fully supports all their legitimate demands.
Why is IDBI Bank in the news?
The IDBI Bank privatization issue involves selling the government’s stake and transferring control of the bank to a private foreign company. The central government has approved the sale of 60.72% of IDBI Bank’s stake to Canadian company Fairfax. This deal is worth approximately ₹52,878 crore.
When was IDBI Bank established?
- IDBI Bank was established in 1964 to boost the country’s industrial development. Its purpose was to provide loans to companies and large projects.
- The bank was established in 1964 when it was formerly owned by the RBI.
- Its ownership was transferred to the Central Government in 1976.
Why are bank employees protesting?
- Reservation issue: Whether the reservation system for SC, ST, and OBC categories in public sector banks will continue after becoming private banks is a major question. Employees are vocal about this issue.
- Job security: There is a fear that service conditions, promotions, and job security will be affected after private management comes into place.
- Public control: Employees believe that public sector control should remain over banks built with public money.
Authored by: Abhishek Pandey
About the author
Abhishek Pandey is a digital journalist at Navbharat Times. He joined Navbharat Times, the digital wing of the Times of India Group, in July 2025. He currently covers news for the National and Delhi desks. I have 4 years of experience in journalism, working as a reporter and on the desk.
Courtesy: Hindi News