The Congress party has called for an immediate halt to the proposed sale of IDBI Bank to Canada’s Fairfax Financial Holdings. They are demanding a Joint Parliamentary Committee (JPC) investigation into the transaction, alleging that the government has manipulated the bank’s valuation.
Senior Congress leader Shaktisinh Gohil claimed that the sale process lacked transparency and that the foreign buyer might use the bank’s own funds to finance the acquisition. He cited a conversation suggesting that payments would be made in installments, with IDBI Bank’s resources used for the remaining cost. Mr. Gohil questioned why a profitable bank, which had earned significant cumulative profits between 2021 and 2026 with low non-performing assets, was being sold.
Further concerns were raised regarding the revision of the bank’s share valuation after bids were opened, from an initial ₹94.42 to ₹75, before the government announced a deal at ₹81 a share. The party also questioned regulatory concessions granted to Fairfax and the valuation of the bank’s real estate assets. The Congress highlighted the potential implications for reservation-based employment opportunities with the loss of public sector status.
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Source: thehindu.com
