Akhilesh Yadav criticises IDBI Bank divestment as Sitharaman defends sale

Samajwadi Party chief Akhilesh Yadav on Wednesday launched a scathing critique of the government's plan to divest its stake in IDBI Bank, characterising the move as a fire-sale of a critical national asset. The opposition leader questioned the timing and terms of the divestment, suggesting the government was prioritising short-term revenue generation over long-term financial stability.

Finance Minister Nirmala Sitharaman responded swiftly to the criticism, defending the divestment strategy as a prudent fiscal measure aligned with the government's broader privatisation agenda. Sitharaman argued that the sale would unlock value for stakeholders while allowing the bank to operate with greater operational autonomy and efficiency under new management.

The IDBI Bank divestment has emerged as a contentious policy issue, with opposition parties viewing it as a retreat from public sector banking. The government maintains that selective divestment of non-core assets is essential to reduce fiscal strain and redirect resources toward developmental priorities.

The Finance Ministry has indicated that the sale process will follow established regulatory guidelines and market norms. Officials have stated that the divestment is part of a broader economic strategy to enhance government finances and improve asset productivity across the public sector.