Finance Minister Nirmala Sitharaman on Wednesday responded to Samajwadi party leader Akhilesh Yadav's remarks on IDBI Bank-Fairfax deal saying his allies now in the INDI Alliance ruined public sector banks through 'phone banking' and 'crony capitalism.'

Yadav launched a jibe at the latest Cabinet decision on sale of stake in IDBI Bank to Fairfax Financial Holdings’ subsidiary. "Now, all that's left is for the government to sell itself... It seems like the BJP government, seeing its shop about to shut down, has planned to put up a 'Season End Sale' sign and sell everything off before making a quick exit," he said.

Also read: Cabinet approves Rs 52,878 crore IDBI Bank sale to Fairfax arm in India’s largest financial-sector FDI

Reacting to the Opposition's remarks, she said, "The UPA received support from your party starting from 2004. The UPA left banks in a pathetic condition. It is strange that you are talking about banks now and didn’t question your allies, then!"

"Your allies now in the INDI Alliance ruined public sector banks through 'phone banking' and 'crony capitalism.' During the tenure of the UPA government—backed by your party—IDBI Bank itself extended loans to individuals from whom recovering both the principal and the interest is the effort we are undertaking," Sitharaman said.

It is our NDA government under PM Modi that revitalized the entire banking system, including IDBI Bank, through transparent policies and the infusion of capital, the finance minister asserted. "Now that the banks are in a strong position, you are feigning sympathy?"

The Union Cabinet approved the sale of a controlling 60.72 per cent stake in IDBI Bank to Canada's Fairfax Financial Holdings for Rs 52,878 crore, following which Life Insurance Corporation of India's (LIC) shareholding will fall to 19 per cent.

Under the plan, the government will divest a 30.48 per cent stake in IDBI Bank, while Life Insurance Corporation of India (LIC) will sell 30.24 per cent. Following the transaction, the Centre and LIC will retain stakes of 15 per cent and 19 per cent, respectively, taking their combined shareholding to 34 per cent.

Sitharaman earlier hailed the Cabinet Committee on Economic Affairs' (CCEA) decision, saying the move would enable the bank's next phase of growth through foreign direct investment (FDI) while retaining a minority stake and strengthening India's banking ecosystem.

“India’s reform trajectory reaches another milestone today with the CCEA’s approval of IDBI Bank’s strategic restructuring. Having supported the bank’s recovery, we are now enabling its next phase of growth through the infusion of Foreign Direct Investment while retaining a minority stake. This will not only strengthen the banking ecosystem but also help banking services surpass global benchmarks. It reinforces that India’s growth story is strong, its economy is resilient, and the government’s commitment to reform is unwavering,” she said in the post.