IDBI Bank was in poor condition when handed over: Sitharaman

Finance Minister Nirmala Sitharaman responded to criticism of the IDBI Bank privatisation, stating that the financial institution was handed over to the government in deteriorated condition. Her remarks came as a rebuttal to opposition leader Rahul Gandhi, who had challenged the sale to Fairfax Financial Holdings.

Sitharaman's defence of the divestment underscored the government's position that transferring the troubled lender to private management would aid its turnaround and operational efficiency. The minister argued that the bank's pre-existing financial difficulties necessitated the strategic shift in ownership.

Gandhi had voiced concerns over the sale, contending that the transaction was not in the best interests of IDBI Bank's workforce. The Congress leader had advocated for alternative approaches to addressing the bank's challenges while protecting employee interests.

The dispute reflects broader disagreements over the government's privatisation strategy for state-owned enterprises. The IDBI Bank transaction marks a significant step in the administration's agenda to divest government stakes in select financial institutions, a move supporters argue will enhance competitiveness and operational performance.