Leader of the Opposition in the Lok Sabha, Rahul Gandhi, extended his support to the employees of IDBI Bank on Friday. Bank unions and various political parties have opposed the central government’s decision to sell its stake in the bank.
The Congress leader shared a letter addressed to the ‘IDBI Bank family’ on X (formerly Twitter). In it, he criticized the government’s move, contrasting it with the bank’s establishment during the Congress-led administration.
What did Rahul Gandhi say?
He stated, “IDBI was established during the Congress era to help build the nation’s industries. Under the Modi regime, however, bids were invited and a price was subsequently fixed. During the Congress era, banks were being created; under Modi, they are being sold off. I stand with the employees of IDBI Bank.”
What is the government’s stance?
A day earlier, the central government stated that the sale of its stake in IDBI Bank is part of a strategic restructuring. The government explained that the process has been conducted in accordance with the rules stipulated in the ‘Request for Proposal’ (RFP). It was initiated following approval from a panel of secretaries and the Cabinet Committee on Economic Affairs. Earlier this year, the disinvestment process for the bank had to be called off because the bids received were significantly lower than the set reserve price. Subsequently, the government invited fresh bids from the two companies remaining in the fray. Before deciding to sell its stake—potentially to Fairfax Holdings—the government employed two different valuation methods.
In a statement, the government clarified that the first round of the process was conducted according to its internal operational procedures. These were merely indicative guidelines, not rigid rules or laws. The government stated, “It has been clarified at the very outset that the proposed procedure should not be viewed as a rigid legal framework. Appropriate changes or amendments may be made, as and when necessary, to ensure the successful and timely completion of the transaction. Given the complex nature of strategic transactions, these guidelines offer flexibility, helping to avoid the waste of time and resources that can otherwise occur during lengthy processes.”
