Rahul Gandhi Backs IDBI Bank Employees Opposing Centre’s Proposed Stake Sale To Fairfax

Congress leader Rahul Gandhi has written a message of support to the employees of IDBI Bank protesting at the Centre’s proposed sale of its majority stakes in the lender to the Canada-based group Fairfax Financial Holdings. He had said that the BJP government had sold a money-spinning public institution which was constructed on public money.

In an open letter addressed to the bank’s employees, Gandhi questioned the rationale behind the proposed privatisation and raised concerns about its possible consequences for employees, depositors and reservation policies.

Gandhi said he stood with the employees in their opposition to the transaction, backing their efforts to protect the institution and their interests.

Questions raised over valuation process

The proposed sale has also come under scrutiny over the valuation process. A Businessworld investigation reportedly flagged concerns about the timing of a revised valuation exercise and changes made to its methodology.

The development has renewed interest in the proposed transaction, with questions raised as to how the bank’s value has been determined and what impact the majority ownership transfer to a private buyer will have on the bank.

Gandhi’s involvement brings in a political aspect to the workers’ dissent, as the Congress chief attacks the government’s move to sell its stake in the lender.