Yadav accused the BJP-led government of putting national assets up for sale, while Sitharaman countered that the Samajwadi Party had supported the Congress-led United Progressive Alliance (UPA) government when public sector banks accumulated substantial bad loans.
The confrontation followed the Cabinet Committee on Economic Affairs’ approval of the sale of a 60.72 per cent stake in IDBI Bank to a Fairfax subsidiary for Rs 52,878 crore, one of the country’s largest banking transactions involving foreign investment.
Yadav criticised the decision through a social media post, suggesting that the government was disposing of public assets before losing power.
“Now, all that’s left is for the government to sell itself,” he remarked, comparing the administration’s privatisation programme to a commercial clearance exercise.
He suggested that the BJP government was preparing a “Season End Sale” of national assets because it anticipated the closure of its political operations.
Sitharaman responded by questioning the opposition leader’s silence during the UPA administration, which received support from the Samajwadi Party.
“The UPA left banks in a pathetic condition,” she said, arguing that Yadav had failed to challenge his political allies when financial institutions were facing serious difficulties.
The finance minister accused parties associated with the opposition INDIA bloc of weakening public sector banks through politically influenced lending and favouritism.
She specifically referred to what she described as “phone banking” and “crony capitalism”, alleging that lending decisions under previous administrations had contributed to the deterioration of bank balance sheets.
Sitharaman maintained that IDBI Bank had extended loans during the UPA period whose principal and interest remained difficult to recover.
She credited the National Democratic Alliance government under Prime Minister Narendra Modi with restoring the banking system through capital injections, regulatory measures and greater transparency.
The minister also accused Yadav of displaying selective concern for public sector banking institutions after their financial condition had improved.
The exchange highlighted conflicting political positions on the transfer of government-controlled financial assets to private investors, although the approved transaction involves the sale of holdings belonging to both the Centre and Life Insurance Corporation of India (LIC).
Under the arrangement, the government will sell 30.48 per cent of IDBI Bank’s equity, while LIC will dispose of another 30.24 per cent.
Following completion, the Centre will retain approximately 15 per cent and LIC about 19 per cent, leaving them with a combined minority holding of 34 per cent.
Fairfax’s acquisition vehicle, 10955230 Canada Inc., emerged as the successful strategic buyer following a competitive bidding process.
The approved purchase price is Rs 81 per share, exceeding the benchmark valuation of Rs 75.99 established through independent assessments commissioned for the transaction.
Government officials said the winning offer met the valuation requirements and represented an acceptable price for transferring management control.
Sitharaman described the transaction as strategic restructuring rather than a complete withdrawal of government investment, emphasising that both existing institutional shareholders would retain substantial interests.
The finance ministry expects the transaction to attract foreign capital and strengthen the lender’s capacity to expand its operations.
Fairfax, headed by Prem Watsa, has separately confirmed its selection as strategic buyer. Completion remains subject to regulatory approvals, including scrutiny by the Reserve Bank of India.
The transaction is expected to be completed during the financial year ending March 2027, provided the necessary approvals and contractual requirements are satisfied.
IDBI Bank’s financial performance has improved substantially since the period when mounting bad loans prompted regulatory intervention.
The Reserve Bank placed the lender under its Prompt Corrective Action framework in May 2017, imposing restrictions because of deteriorating asset quality and losses.
Those restrictions were lifted in March 2021 following improvements in the bank’s financial position, subject to continuing regulatory monitoring.
Government figures show that IDBI Bank’s gross non-performing asset ratio declined from 31.78 per cent in September 2018 to 2.32 per cent in March 2026.
Its net non-performing asset ratio fell from 17.30 per cent to 0.15 per cent over the same period.
The bank reported a net profit of Rs 9,513 crore for the financial year ending March 2026, reflecting its improved profitability before the proposed ownership transfer.
