The finance minister defended the government’s handling of the transaction as the debate over IDBI Bank’s valuation and future ownership intensified.
New Delhi, October 30, 2026: Finance Minister Nirmala Sitharaman on Friday rejected Rahul Gandhi’s criticism of the IDBI Bank stake sale, saying the government had followed due process in the lender’s strategic restructuring.
Responding to the Leader of the Opposition, Sitharaman accused previous Congress governments of political interference in bank lending. She credited the Narendra Modi government with helping restore IDBI Bank’s financial health through recapitalisation exceeding ₹25,000 crore and changes in management practices. Those statements represent the finance minister’s account of the bank’s troubles and recovery.
The exchange follows the government’s October 14 approval of a transaction involving a 60.72% stake in IDBI Bank. The approved buyer is 10955230 Canada Inc., whose parent is Fairfax Financial Holdings. The announced consideration is approximately ₹52,878 crore.
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Add INDYASTORY on GoogleWhat Rahul Gandhi questioned
Gandhi criticised the sale and questioned the sequence of bidding and valuation. He also expressed solidarity with IDBI Bank employees.
Sitharaman countered that the bank had inherited serious bad-loan problems and was now positioned for further growth. Her allegations about Congress-era interference form part of the political dispute; they should not be treated as independent findings about responsibility for individual loans.
How the government and LIC stakes will change
The approved transaction combines shares held by the Union government and Life Insurance Corporation of India.
| Shareholder | Stake being sold | Residual stake under announced terms |
|---|---|---|
| Government of India | 30.48% | 15% |
| LIC | 30.24% | 19% |
| Combined | 60.72% | 34% |
The government’s published FAQ says the buyer must present its credentials to RBI and submit a roadmap for meeting regulatory conditions. Approval of the buyer and transaction terms should therefore be distinguished from completion of the ownership transfer.
Why the valuation matters
The government’s October 14 explanation says initial bids were not accepted because they fell below the reserve price of ₹94.42 per share. Qualified bidders were subsequently invited to submit their best offers.
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Add INDYASTORY on GoogleFor the later assessment, two professional agencies used market-multiple and asset-valuation methods. Their average valuation produced a benchmark of ₹75.99 per share. The government accepted the winning offer of ₹81 per share, saying it exceeded both that benchmark and the agencies’ individual estimates.
The distinction matters because a listed share price, a valuation benchmark and a bid for a controlling stake serve different purposes. Explaining those differences helps readers assess the dispute beyond the competing political statements.
IDBI Bank’s regulatory status needs context
Although the transaction concerns shares held by the government and LIC, RBI has classified IDBI Bank as a private-sector bank for regulatory purposes since January 21, 2019.
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Add INDYASTORY on GoogleThe classification followed LIC’s acquisition of 51% of the bank’s paid-up equity capital. Describing IDBI simply as a public-sector bank without this qualification leaves out an important part of its ownership history.
The lender’s financial difficulties also predate the current sale debate. According to the government’s restructuring announcement, RBI placed IDBI Bank under its Prompt Corrective Action framework in May 2017 because of non-performing assets and losses. The restrictions were lifted in March 2021 following an improvement in its financial position, subject to conditions and continued monitoring.
What readers should watch next
The next developments to follow are regulatory compliance, transaction completion and any formal announcements affecting employees or customers.
The announced purchase consideration is payment for existing shares being sold by the government and LIC. It should not be confused with a separate commitment to inject the same amount as fresh capital into IDBI Bank.
For now, the political argument centres on whether the sale delivers fair value and an appropriate ownership structure. The announced terms establish the proposed share transfer; subsequent disclosures will be needed to assess how the transaction is implemented.
