The Congress on Monday (November 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) probe into the transaction, alleging that the government had manipulated the bank’s valuation.

The party alleged 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 “major scam” by the Narendra Modi government and demanded that both valuation reports be made public.

Addressing a press conference, senior Congress leader Shaktisinh Gohil alleged that the disinvestment process was riddled with irregularities and lacked transparency. 

Citing a conversation between an analyst and Fairfax Chairman Prem Watsa and President Peter Clarke, Mr. Gohil claimed that the company had indicated that the payment would be made in instalments, with the initial investment followed by the use of IDBI Bank’s resources to meet the remaining acquisition cost.

“Prem Watsa is a very close to Modi ji and had showered praise on him during the 2017 Vibrant Gujarat Summit,” the Congress leader said.

Mr. Gohil questioned the rationale of selling a profitable Indian bank to a foreign company using its own funds. He said IDBI Bank had 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 on this measure, he said. “Why is a bank that is delivering such high profits being sold?” he asked.

The Congress leader also questioned the revision of the bank’s valuation from ₹94.42 to ₹75 a share after the bids had been opened. He said the government had initially fixed the valuation at ₹94.42 a share before inviting bids, but subsequently revised it downwards. 

The government was now claiming to have secured a good deal by selling the bank at ₹81 a share, he said, demanding disclosure of both valuation reports and the identity of the second bidder.

Jaswant’s assurance

Mr. Gohil invoked 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%. A Parliamentary Standing Committee on Finance had also favoured retaining the government’s majority stake, he said.

He further questioned the regulatory concessions extended to Fairfax, including the two-year window reportedly allowed to reduce its control in another Indian bank, and sought details of the source of funds for the acquisition.

The Congress also raised concerns 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 the loss of public sector status for reservation-based employment opportunities also needed to be examined.

On October 14, the government had approved the sale of a 60.72% stake in IDBI Bank to Fairfax for about ₹53,000 crore. The transaction, subject to regulatory clearances, is expected to be completed by the end of the current financial year.