Finance Minister Nirmala Sitharaman sharply reacted to the statements by Samajwadi Party politician Akhilesh Yadav regarding the government's approval of the sale of IDBI Bank. She reminded him about the state of public sector banks, which was left by the previous UPA government before they were restored by the administration of Narendra Modi.
After the Cabinet decided on the bank's sale, Akhilesh, who is an ally of the Congress, stated: 'Only the government remains that can be sold. It seems the BJP government has decided to sell everything through a 'season-end clearance,' as its own store is closing.'
In response, Sitharaman stated: 'The UPA received support from your party starting in 2004. The UPA left the banks in a deplorable condition. It is strange that you are talking about banks now and did not ask questions to your allies back then!'
She continued that 'Allies in the INDI Alliance have destroyed public sector banks through 'telephone banking' and 'corrupt capitalism.' During the rule of the UPA government, supported by your party, IDBI Bank itself provided loans to individuals whose repayment of both principal and interest is an exercise we conduct.'
Sitharaman added that it was the NDA government under Modi that revitalized the entire banking system, including IDBI Bank, through transparent policies and capital infusion. She also told the former Chief Minister of Uttar Pradesh that 'Now that the banks are in a strong position, you pretend to be sympathetic.'
The term 'telephone banking' was coined by the BJP to point out how banks issued huge sums to dubious business houses at the behest of certain politicians, creating a massive burden of non-performing assets (NPA) and leading to the so-called 'double balance problem,' hindering growth. The Modi government often highlights the record profits achieved by public sector banks due to its reforms.