Hyderabad: Leader of Opposition in the Lok Sabha Rahul Gandhi on Friday questioned the Centre's decision to sell IDBI Bank, raising concerns over the future of its employees, reservation provisions and the government's earlier commitment to retain majority ownership of the lender.
In a letter addressed to the bank's employees, Gandhi said the proposed sale would reduce the combined shareholding of the Centre and the Life Insurance Corporation of India (LIC) from around 95 per cent to 34 per cent. He argued that institutions built using taxpayers' money belonged to the people and questioned the government's decision to reduce its stake in the bank.
Gandhi also recalled the government's assurance to Parliament in 2003 that it would retain at least 51 per cent ownership in IDBI Bank, describing it as a commitment to the people.
The Congress leader said the proposed privatisation could have implications for reservation provisions for Scheduled Castes, Scheduled Tribes and Other Backward Classes, besides affecting employees' service conditions.
Recalling his interaction with a group of IDBI Bank employees at Parliament House in March last year, Gandhi said they had questioned why the government wanted to sell a bank they had helped turn profitable.
“You asked me a simple question: why is the government selling a bank that you have made profitable? I took that question to the Lok Sabha. I asked why a profitable public bank was being sold, and how its employees and depositors would be protected. The government gave no reason. Now it has decided to sell IDBI Bank to Fairfax, a Canadian company,” he wrote.
Gandhi cited the bank's financial performance to underline the employees' contribution to its turnaround. He said IDBI Bank, which was making losses seven years ago, earned a profit of more than Rs 9,000 crore last year.
“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.
Separately, in a post on X, Gandhi criticised the BJP-led government for selling institutions established during the Congress regime and expressed solidarity with IDBI Bank employees.
“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. I stand with the employees of IDBI Bank,” he said.
Reiterating the Congress's position on the public sector, Gandhi said public sector banks were instruments of nation-building and should not be treated as assets to be sold. He said the party supported a strong public sector alongside the private sector.
"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. You asked me to stand with you. I stand with you in your fight today, and fully support all your legitimate demands. Stay together. Stay determined. Jai Hind," he said.