Sitharaman fires back at Rahul over IDBI Bank rowNEW DELHI: Finance minister Nirmala Sitharaman on Friday defended the Centre's proposed sale of a controlling stake in IDBI Bank, hitting back at Congress leader Rahul Gandhi's criticism and accusing previous Congress-led governments of political interference and financial mismanagement.Responding to Rahul's opposition to the proposed sale of the bank to a subsidiary of Canada's Fairfax Financial Holdings, Sitharaman said IDBI Bank was in a "distressed state when the NDA government took charge."In a post on X, the finance minister said previous Congress-led governments had treated banks and financial institutions as personal entities, pressuring employees to extend loans by bypassing lending norms."We all know how Congress has used Banks and financial institutions as personal entities and pressured bank employees to extend loans at their whim, bypassing prudent lending norms. Let me list a few instances. - In 1957, Haridas Mundra got money from LIC due to influence by the Congress leaders. - In 1976, Indira Gandhi's government removed SBI Chairman R.K. Talwar after he refused political pressure to relax lending conditions for a company linked to Sanjay Gandhi's circle.- Sanjay Gandhi pressured the Central Bank of India over loans to Maruti. - B. Janardhana Poojary, MoS Finance under Indira Gandhi and Rajiv Gandhi — pressured bank employees to issue loans in the 1980s. - Pawan Kumar Bansal, as a minister in the UPA, pressured Canara Bank to give loans to his family-linked businesses," she posted.‘IDBI Bank was handed over to us in poor shape’Sitharaman also accused previous administrations of pushing IDBI bank to extend loans to large business groups with alleged links to Congress leaders. She named Videocon, Winsome, ABG Shipyard and Kingfisher, saying the loans later turned into non-performing assets (NPAs) and caused huge losses to the lender."The IDBI Bank was handed over to us in poor shape, as IDBI itself was forced to lend to large business groups with close connections to @INCIndia leaders such as Videocon, Winsome, ABG Shipyard, Kingfisher, etc. These turned into bad loans, causing huge losses for IDBI Bank, which we recognised," she added.The finance minister also cited a series of historical controversies to support her argument, including the 1957 Mundra scandal, the removal of State Bank of India chairman RK Talwar in 1976, alleged pressure over loans to Maruti and instances of political interference during the 1980s and the UPA era.Rahul Gandhi backs IDBI Bank employeesEarlier on Friday, Rahul Gandhi extended support to IDBI Bank employees amid protests by bank unions and political parties against the Centre's decision to sell its stake in the lender.In a post on X, the Congress leader shared a letter addressed to the IDBI Bank family, criticising the government's move and contrasting it with the bank's establishment during the Congress regime."During Congress's time, IDBI was established—to build the nation's industry. During Modi's time, first the bidding was seen, then the price was set," he said."During Congress's time, banks were being created. During Modi's time, they are being sold. I stand with the employees of IDBI Bank," Rahul added.The Centre had said a day earlier that the proposed stake sale was part of a "strategic restructuring". It maintained that the process followed the provisions laid down in the request for proposal (RFP) and was undertaken after approval from a panel of secretaries and the Cabinet Committee on Economic Affairs.Join conversationShare your thoughts in the commentsBe respectful · TOI community guidelinesRound 1: Rahul, Sitharaman trade barbs over Tata, IDBIThe latest exchange marks the second round of sharp exchanges between Rahul and Sitharaman in three days. The two had first traded barbs on Wednesday over the boardroom battle at Bombay House, with Rahul accusing the government of allowing the Tata Group to be "criminally destroyed".Rahul had taken to X to criticise the developments at the conglomerate, saying, “Tata is being criminally destroyed, and no business leader dares say a word. How long will you stay silent? Until they own you? Indian business is not Modi and Shah’s plaything. You lack courage. We don’t. We will ensure justice for these crimes,”Within hours, Sitharaman hit back at the Congress leader, saying, “Being the LoP (leader of opposition in Lok Sabha) Rahul Gandhi, I suggest you refrain from politicising every issue. Also, casually labelling commercial and legal matters as criminal is unacceptable,”She also accused the Congress of harming the interests of Indian business.Do you think selling the government's stake in public sector banks benefits the economy?3k+ users shared opinion today5k+ users already voted today3k+ users shared opinion todayShare OpinionGet the latest India News and Live updates. Download the TOI app.