New Delhi:
Finance Minister Nirmala Sitharaman on Friday hit back at Leader of Opposition Rahul Gandhi over the proposed sale of IDBI Bank, accusing successive Congress governments of using public sector banks to extend loans to politically connected businesses. She argued that the Narendra Modi government had revived the lender through recapitalisation and professional management.
The exchange came a day after Gandhi opposed the government’s decision to sell IDBI Bank to Canadian company Fairfax and expressed support for the bank’s employees.
The Congress leader questioned the rationale for selling a lender that had returned to profitability, while raising concerns over employee protections, reservations and the government’s reduced stake following the transaction.
Responding to Gandhi’s criticism in a post on X, Sitharaman said IDBI Bank had been handed over to the NDA government in poor condition after being forced to lend to large business groups with close links to Congress leaders.
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 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. 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. 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. All due process has been followed in the IDBI Bank strategic restructuring, and we have already clarified this yesterday. Check this: https://t.co/EjAOziADyf Many more instances of blatant scams and economic mismanagement have been covered in the White Paper on the Indian Economy released in February 2024. It remains relevant even now. Read here: https://t.co/MojSe36Zb2 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.
— Nirmala Sitharaman (@nsitharaman) October 30, 2026
“IDBI Bank was handed over to us in poor shape,” Sitharaman said, naming Videocon, Winsome, ABG Shipyard and Kingfisher among the companies whose loans had turned into bad debts and caused substantial losses to the lender.
She said the NDA government had revived the bank through professional management, prudent lending practices and recapitalisation of more than Rs 25,000 crore.
Read | “Ghosts Everywhere”: Nirmala Sitharaman Hits Back At Rahul Gandhi’s Tata Remark
“IDBI Bank is now poised for its next phase of growth,” she said.
Sitharaman also accused the Congress of exerting political pressure on banks and financial institutions to extend loans without following prudent lending practices.
Gandhi, in a post on X on Thursday, said the Congress had established IDBI to support the country’s industrial development, while the Modi government was now selling banks.
कांग्रेस के समय में IDBI बना – देश का उद्योग खड़ा करने के लिए। 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/uLT7mWTYyr
— Rahul Gandhi (@RahulGandhi) October 30, 2026
“During Congress’s time, banks were being created. During Modi’s time, they are being sold,” he said.
He also shared a letter addressed to IDBI Bank employees, in which he said the lender’s turnaround was the result of their efforts.
The Finance Minister’s minister’s latest face-off with the Leader of Opposition has come two days after she had hit back at Gandhi over his comments on the Tata Group issue. Sitharaman had on Wednesday accused Rahul Gandhi of politicising issues and casting baseless aspersions on Indian industry following his remark that the Tata Group was being “criminally destroyed”.
“Being the Leader of the Opposition, I suggest you refrain from politicising every issue. Also, casually labelling commercial and legal matters as criminal is unacceptable,” the Finance Minister said in a post on X.
Being the LoP @RahulGandhi, I suggest you refrain from politicising every issue. Also, casually labelling commercial and legal matters as criminal is unacceptable. You have repeatedly decried the successes of Indian industry & our entrepreneurs. Now, are you trying to incite our business leaders to join you in spreading distrust & toxicity? For decades, your party had smothered the spirit of the Indian entrepreneurs under the stifling ‘Licence-Quota Raj’ & inflicted poverty on crores of Indians. On the other hand, our government led by PM @narendramodi values the Indian industry as job creators & drivers of economic growth. Our policies have been tailored to enable enterprise, support industry and encourage investment. Political parties, leaders, governments and institutions share an equal responsibility to support our industry, strengthen our farmers and secure the future of our youth. Therefore, it is essential to engage constructively rather than casting baseless aspersions to suit your narrow political motives. The Constitution of India ensures justice to all its citizens & our Honourable Courts are entrusted with upholding it. History is witness to the shoddy manner in which you, your party and the PMs belonging to your party have demeaned the judiciary. So Rahul ji, refrain from seeing ghosts everywhere.
— Nirmala Sitharaman (@nsitharaman) October 28, 2026
Gandhi had alleged that Indian businesses were being treated as the “plaything” of Prime Minister Narendra Modi and Home Minister Amit Shah. “Tata is being criminally destroyed, and no business leader dares say a word. How long will you stay silent? Until they own you?” the Congress leader had said.
He also claimed that the business leaders lack courage.
In her riposte, the Finance Minister said, “You have repeatedly decried the successes of Indian industry and our entrepreneurs. Now, are you trying to incite our business leaders to join you in spreading distrust and toxicity?”
