Union Finance Minister Nirmala Sitharaman attacked Samajwadi Party chief Akhilesh Yadav over his remarks on the IDBI Bank stake sale on Wednesday, accusing his party of failing to question the UPA government responsible for "ruining" public sector banks.
Her attack came in response to Yadav's comment: "Now, all that's left is for the government to sell itself... It seems like the BJP government, seeing its shop about to shut down, has planned to put up a 'Season End Sale' sign and sell everything off before making a quick exit."
Earlier in the day, the Union Cabinet approved the sale of a 60.72 per cent stake for Rs 52,878 crore in IDBI Bank to Fairfax of Canada.
In a post on X, the minister alleged that the UPA government left public sector banks in a poor state due to "phone banking" and "crony capitalism."
The stake transfer will comprise a 30.48 per cent holding of the government and a 30.24 per cent stake held by the Life Insurance Corporation of India (LIC). Fairfax won the bid at Rs 81 per share
"During the tenure of the UPA government, which was supported by your party, IDBI Bank itself extended loans to such individuals that we're still struggling to recover even the principal and interest from to this day," Sitharaman said.
Due to heavy NPAs, the bank came under RBI's Prompt Corrective Action, and in January 2019, LIC completed the acquisition of a 51 per cent controlling stake in IDBI Bank for approximately Rs 21,624 crore as part of the disinvestment process.
She claimed that the NDA government, led by Prime Minister Narendra Modi, revived IDBI Bank and the broader banking system through transparent policies and capital infusion.
The minister also wondered why Yadav was expressing concern now, when the banking sector's position had strengthened under the NDA government, and accused the Congress ally of displaying "false sympathy" and shedding "crocodile tears" over the issue.
(With Inputs from PTI)