Finance Minister Nirmala Sitharaman launched a blistering counter-attack against Leader of Opposition Rahul Gandhi on Friday, rejecting claims that the sale of IDBI Bank is an act of mismanagement. She stated bluntly that the lender was handed over to the NDA government in a "poor shape" after decades of political interference. The criticism lands hard because it directly challenges the narrative that the bank's current profitability is a natural outcome of its legacy, rather than a result of aggressive government intervention.
Sitharaman listed specific historical instances to back her claim. She cited the 1976 removal of SBI Chairman R.K. Talwar for refusing political pressure regarding Sanjay Gandhi’s circle, and loans pushed through to Maruti and other entities. The list included more recent defaults from Videocon, Winsome, ABG Shipyard, and Kingfisher, all linked to Congress-aligned business interests. These bad loans, she argued, caused substantial losses that the current government had to absorb through professional restructuring.
The financial stakes are massive. The NDA government invested over ₹25,000 crore to recapitalize the bank and restore its health. "The IDBI Bank is now poised for its next phase of growth," Sitharaman wrote on X, emphasizing that all due processes for the strategic restructuring were followed. She contrasted this with the "phonebook for the powerful and a rulebook for the common citizens" era she attributed to Congress rule, claiming that such coercion no longer exists.
Rahul Gandhi, who had defended the bank's employees the previous day, argued that the Congress party originally established IDBI to support industrial development. "During Congress's time, banks were being created. During Modi's time, they are being sold," Gandhi posted, sharing a letter to staff that credited their efforts for the bank's turnaround. He raised concerns about employee protections and reservations post-sale, a point Sitharaman dismissed by referencing the government's commitment to due process.
This verbal sparring is the latest in a rapid series of exchanges between the two leaders. Just two days prior, Sitharaman had responded to Gandhi’s comments on the Tata Group, accusing him of politicizing corporate issues. The IDBI Bank sale to Canadian insurer Fairfax remains the central battleground, with the government positioning it as a strategic exit after a costly rescue, while the opposition frames it as a betrayal of public sector assets.