Rahul Gandhi Backs IDBI Bank Employees, Questions Centre’s Proposed ₹52,878 Crore Fairfax Stake Sale

New Delhi, October 30, 2026: Congress leader and Leader of Opposition in the Lok Sabha Rahul Gandhi has extended his support to IDBI Bank employees opposing the Centre’s proposed sale of a controlling stake in the public sector lender to Canada-based Fairfax Financial Holdings. In an open letter addressed to IDBI Bank employees, Gandhi questioned the government’s decision to privatise a bank that has returned to profitability. He also raised concerns about the possible impact of the transaction on employees, depositors and reservation policies. Gandhi recalled that a group of IDBI Bank employees had met him at Parliament House in March 2025 and questioned why the government wanted to sell a bank they had helped make profitable. He said he subsequently raised the matter in the Lok Sabha, seeking an explanation for the proposed sale and assurances regarding the interests of employees and depositors. Rahul Gandhi Highlights IDBI Bank’s Financial Recovery In his letter, Gandhi credited the bank’s employees for its financial turnaround, stating that IDBI Bank had moved from losses several years ago to recording a profit of more than ₹9,000 crore in the previous financial year. According to the bank’s reported financial results, its net profit increased to ₹9,513 crore in FY 2025–26, compared with ₹7,515 crore in the previous financial year. Gandhi argued that an institution built with public money should remain accountable to the public. He also referred to an assurance made in Parliament in 2003 regarding the government maintaining at least 51 per cent ownership in IDBI Bank. Concerns Over Employee Rights and Reservation The Congress leader warned that the proposed privatisation could affect existing protections and employment-related policies. He specifically raised concerns about reservation provisions for candidates belonging to Scheduled Castes (SC), Scheduled Tribes (ST) and Other Backward Classes (OBC). He also expressed apprehensions about employees’ service conditions and other benefits following the transfer of management control to a private owner. Gandhi reaffirmed his support for the employees, saying that public sector banks should be viewed as institutions that contribute to national development rather than simply as assets for sale. Details of the Proposed Fairfax Deal On October 14, 2026, the Union Cabinet approved the sale of a 60.72 per cent stake in IDBI Bank to a Fairfax-backed entity for approximately ₹52,878 crore. Under the proposed transaction, the Central Government will divest its 30.48 per cent stake, while the Life Insurance Corporation of India (LIC) will sell its 30.24 per cent holding. After the transaction, the government is expected to retain 15 per cent ownership in the bank, while LIC will hold 19 per cent. The deal is subject to the required regulatory approvals, including clearance from the Reserve Bank of India. Government Responds to Questions Over Valuation The proposed transaction has also attracted scrutiny over the bank’s valuation and the bidding process. The Department of Investment and Public Asset Management (DIPAM) has clarified that the second round of bidding followed a procedure approved by the authorised government mechanism. The government has maintained that the reserve price was not reduced during the revised bidding process. The Finance Ministry has also stated that the winning bid of ₹81 per share was higher than the benchmark fair value of ₹75.99 per share determined by two independent valuation agencies. Meanwhile, the government has said that safeguards for existing employees and pensioners have been incorporated into the transaction arrangements. Officials have stated that existing employees’ service conditions and pension commitments will remain protected. Political Debate Over Public Sector Bank Privatisation Rahul Gandhi’s support for IDBI Bank employees has added a fresh political dimension to the ongoing debate over the proposed disinvestment. While the government is moving ahead with the strategic sale, employees have raised concerns about job security, pension benefits, reservation policies and the future of the institution. The proposed transaction has therefore brought renewed attention to a broader question: how should the government balance private investment and banking-sector reforms with the interests of employees, depositors and public institutions? The final outcome will depend on the completion of the required regulatory process and the implementation of the agreed transaction safeguards.