Congress built banks, BJP sells: Rahul Gandhi after IDBI sale
What's the story
Congress leader Rahul Gandhi has opposed the central government's proposed sale of its majority stake in IDBI Bank to Canada-based Fairfax Financial Holdings. In an open letter, he questioned the need for privatizing a profitable public institution built with taxpayer money and raised concerns about how this deal would affect employees, depositors, and reservation policies. "During Congress's time, banks were being created. During Modi's time, they are being sold," he wrote.
Privatization concerns
Government assured it would always retain at least 51% ownership
In the letter to IDBI Bank employees, Gandhi recalled a meeting with the bank employees last year, when they questioned why a profitable bank was being sold.
"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," he wrote.
He also cited a 2003 government assurance to Parliament about retaining at least 51% ownership in IDBI Bank.
Twitter Post
Read his letter here
कांग्रेस के समय में IDBI बना - देश का उद्योग खड़ा करने के लिए।
— Rahul Gandhi (@RahulGandhi) October 30, 2026
मोदी के समय में पहले बोली देखी गई, फिर दाम तय हुआ।
कांग्रेस के time पे बैंक बनते थे। मोदी के time में बिकते हैं।
मैं IDBI बैंक के कर्मचारियों के साथ खड़ा हूँ। https://t.co/6dIok1fxV1 pic.twitter.com/uLT7mWTYyr
Reservation impact
Gandhi warns of loss of SC, ST, and OBC reservations
"An institution built with public money belongs to the public," he said, adding that while this assurance may not be legally binding, it was a commitment to the people of India.
Gandhi warned that privatizing IDBI Bank could affect reservation provisions for SC, ST, and OBC candidates.
He argued that if IDBI is privately owned, these reservations would be lost.
"I stand with you in your fight today, and fully support all your legitimate demands," he told the bank employees.
Valuation scrutiny
Proposed sale faces scrutiny
The proposed sale has come under scrutiny after a Businessworld investigation raised questions about the valuation and bidding process.
The report noted that government officials opened Fairfax Financial's revised bid of ₹81 per share on July 13, 2026, before ordering fresh valuations that set a benchmark price of ₹75.99 per share.
It also questioned the timing of this fresh valuation exercise and whether it was revised after Fairfax's offer was opened.
Sale approval
Congress raises concerns about foreign ownership in Indian banks
On October 14, the Cabinet Committee on Economic Affairs approved the sale of a 60.72% stake in IDBI Bank to Fairfax.
This includes the Centre's 30.48% equity holding and LIC's 30.24% stake in the lender.
Canadian billionaire Prem Watsa-led Fairfax will be the strategic buyer of the government's 30.48% stake, valued at about ₹26,620 crore, and the 30.24% stake held by LIC, valued at about ₹26,440 crore.