IDBI Bank divestment: Finance Minister Nirmala Sitharaman says Congress, UPA govt used banks, financial institutions as personal entities
Finance Minister Nirmala Sitharaman defended the divestment of IDBI Bank, accusing the previous UPA government of misusing financial institutions for political gain. This follows criticism from Rahul Gandhi, who argued that public banks are essential tools for nation-building rather than assets to be sold.
Why it matters
The exchange highlights the ongoing ideological conflict in India regarding the privatization of public sector banks and the role of government in the financial sector.
New Delhi Amid the row over the divestment of IDBI Bank, Finance Minister Nirmala Sitharaman on Friday (October 30, 2026) took on the Congress and the previous United Progressive Alliance (UPA) government, alleging they used banks and financial institutions as "personal entities" and pressured bank employees to extend loans at their whim, bypassing prudent lending norms. In a post on X, the Finance Minister also cited several instances from the Congress-led government, including the removal of State Bank of India (SBI) chairman R.K. Talwar in 1976 under Indira Gandhi's rule after he allegedly refused to give in to political pressure to relax lending norms for a company linked to Sanjay Gandhi. She was responding to a post on X by senior Congress leader Rahul Gandhi on IDBI Bank.
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