Nirmala Sitharaman defends IDBI Bank stake sale amid opposition criticism

Union Finance Minister Nirmala Sitharaman has criticized Samajwadi Party leader Akhilesh Yadav following the Cabinet's approval of a strategic stake sale in IDBI Bank. The sale involves a 60.72 per cent stake in the bank, valued at Rs 52,878 crore, to Canada-based Fairfax.

Sitharaman accused Yadav and the previous United Progressive Alliance (UPA) government of leaving public sector banks in a precarious state through “phone banking” and “crony capitalism.” She specifically noted that the UPA era saw IDBI Bank extend loans that the government is still struggling to recover. The Minister defended the National Democratic Alliance (NDA) government's reforms, stating that the administration has revitalized the banking sector through transparent policies and capital infusion.

The stake transfer will consist of a 30.48 per cent holding by the government and a 30.24 per cent stake held by the Life Insurance Corporation of India (LIC). Yadav had previously characterized the sale as a “Season End Sale,” suggesting the government was attempting to sell off assets before an exit.