New Delhi: Leader of the Opposition in the Lok Sabha Rahul Gandhi has extended support to IDBI Bank employees opposing the proposed sale of the lender to Canadian company Fairfax, questioning the Centre’s decision to privatise a bank that has returned to profitability.
In a letter addressed to members of the IDBI Bank workforce, Gandhi accused the Narendra Modi government of putting a public institution built with taxpayers’ money up for sale without adequately explaining the reasons behind the move or how the interests of employees and depositors would be protected.
Gandhi said IDBI Bank had reported profits of more than Rs 9,000 crore in the previous financial year, following years of financial difficulties. He questioned why the government was proceeding with its proposed sale despite the bank’s improved financial performance.
In a post on X on Friday, Gandhi said IDBI Bank had originally been established during Congress rule to support the country’s industrial development. He contrasted that with the present government’s decision to sell public-sector banks and reiterated his support for the employees opposing the transaction.
Rahul Gandhi Recalls Meeting With IDBI Bank Employees
Gandhi recalled that a delegation of IDBI Bank employees had met him at Parliament House in March last year. During the meeting, employees had raised concerns about the proposed sale, asking why a profitable bank was being privatised and what safeguards would protect their interests.
He said he subsequently raised the issue in the Lok Sabha but claimed that the government had not provided a satisfactory explanation for its decision.
According to Gandhi, IDBI Bank began as a development-focused financial institution before transitioning into a commercial bank. He acknowledged the challenges faced by the lender during that transition but credited its employees with helping it return to profitability.
Gandhi Questions Government’s Reduced Stake in IDBI Bank
The Congress leader also raised concerns about the proposed change in ownership. He said the government and the Life Insurance Corporation of India (LIC) currently hold a combined 95% stake in IDBI Bank, which would fall to 34% following the proposed sale.
Gandhi referred to an assurance made by the government in Parliament in 2003 that it would retain at least 51% ownership in the bank. He argued that a commitment made to Parliament was also a commitment to the people of the country.
Concerns Over Employee Benefits and Reservation
Gandhi warned that privatisation could affect employment-related protections and benefits available to IDBI Bank staff.
He specifically raised concerns about safeguards linked to reservation for Scheduled Castes (SCs), Scheduled Tribes (STs) and Other Backward Classes (OBCs). He also expressed apprehension that employees could lose protections relating to their service conditions.
Describing public-sector banks as institutions that contribute to national development, Gandhi said they should not be treated merely as assets to be sold.
He reiterated the Congress party’s position that a strong public sector should function alongside private enterprises and urged IDBI Bank employees to remain united in their opposition to the proposed sale.
The proposed transaction has become a point of political contention, with Gandhi questioning the government’s rationale and raising concerns about the future of the bank’s employees and its public-sector character.
