Rahul Gandhi Supports IDBI Bank Staff Against Fairfax Stake Sale
Rahul Gandhi stands with IDBI Bank employees against the privatization deal with Fairfax, advocating for transparency and scrutiny.
Rahul Gandhi expressed support for IDBI Bank employees opposing the proposed sale of a majority stake to Canada’s Fairfax Financial Holdings. This transaction, valued at approximately ₹53,000 crore (USD 5.5 billion), was approved by the Indian government on October 14 and is regarded as the largest foreign investment in an Indian bank.
The United Forum of IDBI Officers and Employees has called for the immediate suspension of the sale process, demanding a parliamentary review. The forum’s convenor, Devidas Tuljapurkar, criticized the move as poorly timed amid unstable market conditions. He argued that a national asset should not be undervalued, stating, “We are seriously concerned that the transaction may undervalue IDBI’s properties and institutional capabilities.”
Gandhi echoed these sentiments, asserting that privatisation could harm employment security and financial inclusion. He emphasized the need for public accountability in such transactions, questioning the government’s commitment to maintaining a majority stake in IDBI.
The government currently holds 45.48 percent equity shares in IDBI Bank, while the Life Insurance Corporation of India (LIC) owns 49.24 percent. The proposed sale involves a 30.48 percent stake from the government and a 30.24 percent stake from LIC, with Fairfax set to pay ₹81 per share, higher than the independent valuation of ₹75.99.
In response to concerns, the Ministry of Finance defended the valuation process, stating that special powers given to the Core Group of Secretaries on Disinvestment (CGD) allowed for a comprehensive review. The ministry clarified that the bidding process did not have a predetermined benchmark and that independent advisors conducted the valuations.
Despite reassurances about the valuation process, skepticism remains regarding the motives behind the sale and its implications for IDBI Bank’s future, as noted by Gandhi and other critics.
Sources
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.