Congress demands JPC probe alleging irregularities in IDBI Bank sale

The Congress party, on Monday, 2 November, 2026, has demanded an immediate halt to the proposed process of selling IDBI Bank to Canada's Fairfax Financial Holdings and a Joint Parliamentary Committee (JPC) investigation into the transaction. Congress has alleged that the government has manipulated the bank's valuation.

Congress in-charge of the communications department and General Secretary Jairam Ramesh has termed the transaction a "major scam" carried out by the Narendra Modi government. He has also demanded the disclosure of both valuation reports.

Addressing a press conference, senior Congress leader Shaktisinh Gohil alleged that there are irregularities and a lack of transparency in this disinvestment process. Referring to a conversation between an analyst and Fairfax Chairman Prem Watsa and President Peter Clark, he stated that the company had indicated that payments would be made in instalments, whereby IDBI Bank's own resources would be used to pay the remaining purchase price after the initial investment. Gohil further added, "Prem Watsa is very close to Modi ji and had praised him during the 2017 Vibrant Gujarat Summit."

Gohil raised the question of why a profitable Indian bank is being sold to a foreign company using its own funds. He provided information that IDBI Bank has earned a total profit of ₹30,105 crore between 2021 and 2026 and its non-performing assets (NPA) are only approximately 2%. He further stated that the profit per employee stood at ₹49.8 lakh, making it one of the leading banks on this metric. He questioned, "Why is a bank that is delivering such high profits being sold?"

The Congress leader also raised questions regarding the changes made to the bank's valuation after the bids were opened. He stated that before inviting bids, the government had fixed the bank's valuation at ₹94.42 per share, but it was subsequently reduced to ₹75. Now, the government claims to have secured a good deal by selling the bank at a price of ₹81 per share, following which Gohil demanded the disclosure of both valuation reports and the identity of the second bidder.

Shaktisinh Gohil also reminded of the assurance given in Parliament by then Finance Minister Jaswant Singh in August 2003 that the government's stake in IDBI Bank would not fall below 51%. He also stated that the Parliamentary Standing Committee on Finance had also favoured maintaining the government's majority stake.

He also questioned the regulatory concessions granted to Fairfax, which reportedly included a two-year period to reduce its control over another Indian bank. He also sought details regarding the source of funds for the acquisition. 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. Gohil stated that the impact of losing public sector status on reservation-based employment opportunities should also be investigated.

Earlier, on 14 October, the government had approved the sale of a 60.72% stake in IDBI Bank to Fairfax for approximately ₹53,000 crore. Subject to regulatory approvals, this transaction is expected to be completed by the end of the current financial year.