Congress demands JPC probe IDBI bank sale, claims irregularities in valuation
Members of the United Forum of IDBI Officers and Employees staged a protest in Patna on Monday, November 2, 2026, demanding the cancellation of the proposed privatization of the bank. Photo credit: ANI
Congress on Monday (Nov 2, 2026) demanded an immediate halt to the proposed sale of IDBI Bank to Canada’s Fairfax Financial Holdings, and a joint parliamentary committee (JPC) probed the transaction, alleging that the government manipulated the bank’s valuation.
The party claimed that the foreign buyer would use the bank’s own funds to finance the acquisition.
Congress general secretary in charge of communications Jairam Ramesh separately described the transaction as a “big scam” by the Narendra Modi government and demanded the release of both the valuation reports.
Congress leader Shaktisinh Gohil said at a press conference that the disinvestment process was riddled with irregularities and lacked transparency.
Referring to a conversation between Fairfax analyst and chairman Prem Watsa and president Peter Clarke, Mr Gohil claimed the company said the payment would be made in installments, with the initial investment followed by the use of IDBI Bank resources to cover the remaining acquisition costs.
“Prem Watsa is very close to Modi ji and had praised him during the 2017 Vibrant Gujarat Summit,” the Congress leader said.
Mr. Gohil questioned the rationale behind selling a profitable Indian bank to a foreign company using its own funds. He said IDBI Bank earned a cumulative profit of ₹30,105 crore between 2021 and 2026 and had non-performing assets of only about 2%.
Its profit per employee stood at ₹ 49.8 lakh, making it one of the leading banks by this measure, he said. “Why is a bank that brings such high profits sold?” he asked.
The Congress leader also questioned the revision of the bank’s valuation from ₹94.42 to ₹75 per share after the bids were opened. He said the government had initially set the valuation at ₹94.42 per share before inviting bids, but subsequently revised it downwards.
The government now claimed to have secured a good deal by selling the bank at ₹81 per share, he said, demanding the disclosure of both the valuation report and the identity of the second bidder.
Jaswant’s assurance
Mr. Gohil was citing an assurance given by the then finance minister Jaswant Singh in Parliament in August 2003 that the government’s stake in IDBI Bank would not be reduced below 51%. The Parliamentary Standing Committee on Finance has also come out in favor of retaining the government’s majority stake, he said.
He further questioned the regulatory concessions granted to Fairfax, including a two-year window that allegedly allowed it to reduce its control in another Indian bank, and sought details of the source of the acquisition’s funds.
The Congress also expressed concern over the valuation of IDBI bank’s real estate assets, including properties in Mumbai and 50 acres of land in Hyderabad’s Cyber City. Mr. Gohil said the implications of losing public sector status for reservation-based job opportunities also needed to be explored.
On 14 October, the government approved the sale of 60.72% stake in IDBI Bank to Fairfax for around ₹53,000 crore. The transaction, subject to regulatory approval, is expected to be completed by the end of the current financial year.
Published – 02 Nov 2026 22:11 IST