NEW DELHI, October 30, 2026 – Amid the ongoing row over the disinvestment of IDBI Bank, Congress leader and Leader of Opposition in the Lok Sabha, Rahul Gandhi, has expressed strong solidarity with the bank’s employees, questioning the Union Government’s decision to privatize a profitable public sector lender.
In a letter addressed to the employees of IDBI Bank and shared on the social media platform X, Gandhi sharply criticized the Centre’s recent move. The Union Cabinet on October 14 approved a deal worth Rs 52,878 crore (approximately $5.56 billion) to sell a 60.72 percent controlling stake in IDBI Bank to a subsidiary of Canada’s Fairfax Financial Holdings.
Under the proposed transaction, the Central Government will sell its 30.48 percent stake, and the Life Insurance Corporation of India (LIC) will divest its 30.24 percent holding, transferring majority control to the private entity and reducing public ownership to around 34 percent.
Taking aim at the current administration’s privatization strategy, Gandhi wrote, “During Congress’s time, IDBI was established—to build the nation’s industry. During Modi’s time, first the bidding was seen, then the price was set. During Congress’s time, banks were being created. During Modi’s time, they are being sold.”
Gandhi credited the employees for the bank’s massive financial turnaround. He noted that IDBI Bank, which was struggling with losses seven years ago, posted a profit of over Rs 9,000 crore last year. “That turnaround is your work,” he told the employees, questioning why a profitable public asset was being handed over to private players.
He recalled that in March 2025, a delegation of IDBI employees had approached him in Parliament, asking why the government was intent on selling a bank they had helped make profitable. Gandhi stated that when he raised this concern in the Lok Sabha, asking for an explanation and demanding assurances to protect depositors and employees, the government provided “no reason.”
The Congress leader also raised significant social and employment concerns regarding the privatization. He warned that transferring ownership to a private entity would severely affect the reservation provisions for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) candidates.
“When IDBI is privately owned, reservation for SC, ST and OBC candidates will go with it. Your service conditions, already weakened, will lose their last protection,” Gandhi asserted in his letter.
He further reminded the government of an assurance given in Parliament in 2003, during the bank’s transition to a commercial entity, that the government would retain at least a 51 percent ownership stake in IDBI.
Reaffirming the Congress party’s ideological stance on the public sector, Gandhi concluded, “The Congress has always believed in a strong public sector working alongside the private sector. Public banks are not assets to be sold off; they are tools to build the nation. I stand with you in your fight today, and fully support all your legitimate demands.”
His remarks align with the United Forum of IDBI Officers and Employees, which has vigorously opposed the proposed sale to Fairfax Financial Holdings, demanding an immediate suspension of the process and a comprehensive review under parliamentary scrutiny.
Published by True Roots Media Network