New Delhi: Congress MP Rahul Gandhi has written an open letter to the employees of IDBI Bank, extending support to them in opposing the disinvestment of the bank, and accusing the Modi government of “selling” institutions built during Congress’s rule.
“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,” the Lok Sabha Leader of Opposition wrote on X, sharing the letter.
Hitting back at Gandhi, Finance Minister Nirmala Sitharaman accused the Congress of “using banks and financial institutions as personal entities” and pressuring employees to “extend loans at their whim, bypassing prudent lending norms”.
“The IDBI Bank was handed over to us in poor shape, as IDBI itself was forced to lend to large business groups with close connections to @INCIndia leaders such as Videocon, Winsome, ABG Shipyard, Kingfisher, etc. These turned into bad loans, causing huge losses for IDBI Bank, which we recognised,” she wrote in a long post on X.
She added that “all due process has been followed in the IDBI Bank strategic restructuring”.
Meanwhile, the IDBI Bank employees’ association, in response to Gandhi, thanked him for backing their opposition to the proposed stake sale.
“IDBI Bank is not just a bank; it is a legacy of nation-building, public trust, and social responsibility. A profitable public institution built with public money deserves transparency, accountability, and protection of public interest,” the message read. “Our fight is not merely for jobs; it is for the future of public sector banking, social justice, and the interests of millions of Indians.”
“We hope this support will strengthen our collective voice to stop the privatisation of IDBI Bank and safeguard its public character,” the association said, ending its message with the slogan: “IDBI BANK IS NOT FOR SALE!”
🙏 A HEARTFELT THANK YOU, SHRI RAHUL GANDHI JI @RahulGandhi Leader of Opposition @INCIndia
The IDBI Bank family sincerely thanks Shri Rahul Gandhi ji, Hon’ble Leader of Opposition in the Lok Sabha, for standing with IDBI Bank employees and supporting their legitimate concerns.… https://t.co/iIrs5Lv2EN
— IDBI Bank Officer's Association-BIHAR & JHARKHAND (@AIIDBIOA_BIHAR) October 30, 2026
The exchange comes days after a similar spat between Gandhi and Sitharaman over Tata Group’s internal leadership dispute.
Gandhi had accused business leaders of remaining silent, writing on X: “Tata is being criminally destroyed, and no business leader dares say a word. How long will you stay silent? Until they own you? Indian business is not Modi and Shah’s plaything. You lack courage. We don’t. We will ensure justice for these crimes.”
Sitharaman had responded by asking him to “refrain from politicising every issue”, adding that “casually labelling commercial and legal matters as criminal is unacceptable”.
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‘Public banks are not assets to be sold off’
In his letter, Gandhi recalled meeting a group of IDBI employees at Parliament House in March last year, saying that they had asked him why the government wanted to sell a bank they had helped turn around.
“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 added.
“Seven years ago, IDBI Bank was losing money. Last year, it made a profit of over Rs 9,000 crore. That turnaround is your work,” the letter read. “Today, the government and LIC own ninety-five percent of this bank. After the sale, they will own thirty-four percent.”
Gandhi added, “That promise may not be written into law, but a promise made to Parliament is a promise made to the people of India.” He also referred to a 2003 assurance made in Parliament that the government would always retain at least 51 percent stake in IDBI.
“When IDBI is privately owned, reservation for SC, ST and OBC candidates will go with it. Your service conditions, already weakened, will lose their last protection,” Gandhi wrote, flagging implications of the stake sale for employees.
“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,” he added. “You asked me to stand with you. I stand with you in your fight today, and fully support all your legitimate demands.”
‘IDBI Bank poised for next phase of growth’
In her rebuttal, Sitharaman listed “instances” of the Congress “using banks and financial institutions as personal entities”.
She wrote:
“- In 1957, Haridas Mundra got money from LIC due to influence by the Congress leaders.
– In 1976, Indira Gandhi’s government removed SBI Chairman R.K. Talwar after he refused political pressure to relax lending conditions for a company linked to Sanjay Gandhi’s circle.
– Sanjay Gandhi pressured the Central Bank of India over loans to Maruti.
– B. Janardhana Poojary, MoS Finance under Indira Gandhi and Rajiv Gandhi — pressured bank employees to issue loans in the 1980s.
– Pawan Kumar Bansal, as a minister in the UPA, pressured Canara Bank to give loans to his family-linked businesses.”
We all know how @INCIndia has used Banks and financial institutions as personal entities and pressured bank employees to extend loans at their whim, bypassing prudent lending norms.
Let me list a few instances.
– In 1957, Haridas Mundra got money from LIC due to influence by… https://t.co/U3m03zSpMg
— Nirmala Sitharaman (@nsitharaman) October 30, 2026
The Finance Minister added, “The NDA govt led by Hon’ble PM Shri @narendramodi revived the IDBI bank through professionalism, prudence and recapitalisation of more than Rs 25,000 crores. The IDBI Bank is now poised for its next phase of growth.”
She further wrote, “Your lies with respect to Rafale had failed and were exposed. You had to apologise. The same will happen here. Congress-era banking had a phonebook for the powerful and a rulebook for the common citizens. The era of ‘connection and setting banking’ is over. Common people now have easy access to loans, and employees are not under pressure to extend loans over the phone calls.”
(Edited by Mannat Chugh)