Rahul Gandhi questions IDBI Bank sale to Fairfax, backs employees opposing privatisation

Congress leader Rahul Gandhi has opposed the Centre’s move to privatise IDBI Bank by selling a majority stake to Canadian financial services firm Fairfax Financial Holdings and said he stands with the bank’s employees opposing the privatisation.

In an open letter to IDBI Bank employees, the Leader of the Opposition in the lower house of parliament expressed concern over the sale of a profit-making bank and policy decisions related to employee rights, depositor safety and reservation.

“Institutions that were formed during the time of Congress are being sold during Modi’s time. I am with the employees of IDBI Bank,” Gandhi said in a post on X on Friday.

He added that the privatisation may also affect the reservation benefits as well as the job security of Scheduled Castes, Scheduled Tribes and Other Backward Classes.

The Centre and LIC will divest 30.48% and 30.24%, respectively. On October 14, the sale of 60.72% of IDBI Bank to Fairfax Financial Holdings was approved by the Cabinet Committee on Economic Affairs for Rs 52,878.08 crore.

The move has been opposed by bank employee unions, who have declared a two-day nationwide hunger strike on 2 and 3 November.

It has been explained by the government that the disinvestment is a part of the company’s strategic restructuring.