New Delhi [India], October 19 : Claiming that foreign firms are "gradually being allowed to acquire Indian banks," Congress leader Jairam Ramesh on Sunday said "these imprudent moves pose substantial risks," and recalled that the Jan Sangh (a precursor to the BJP) had criticised then prime minister Indira Gandhi for not nationalising foreign banks in July 1969.
In a post on X, the Congress leader wrote, "Just as a matter of historical interest, the Jan Sangh had criticised Indira Gandhi for NOT nationalising foreign banks in July 1969. This is a news report of Dec 28, 1969, after the Jan Sangh's meeting in Patna the previous day."
https://x.com/Jairam_Ramesh/status/1979795856309252462?s=08
Ramesh further raised concerns over the gradual acquisition of Indian banks by foreign entities, describing the trend as fraught with "substantial risks."
He highlighted recent high-profile takeovers, noting that Singapore's DBS Group acquired Laxmi Vilas Bank, Canada's Fairfax Group took over Catholic Syrian Bank, and Japan's Sumitomo Mitsui Banking Corporation assumed control of Yes Bank. He also pointed to the expected privatization of IDBI Bank, a public sector bank, in the current financial year.
The social media post reads, "Foreign firms are gradually being allowed to acquire Indian banks. These imprudent moves pose substantial risks. First, Laxmi Vilas Bank was acquired by Singapore's DBS Group. Second, Catholic Syrian Bank was acquired by Canada's Fairfax. Third, Japan's Sumitomo Mitsui Banking Corporation took over Yes Bank."
"Now comes news that Dubai's Emirates NBD is acquiring RBL Bank. And, of course, India's first full privatisation of a public sector bank is expected to be completed in this financial year. This is the sale of IDBI Bank," it added.
The remarks come days after Prime Minister Narendra Modi, addressing the NDTV World Summit 2025 in New Delhi, criticised previous Congress governments for engaging in "sarkarikaran" of policy processes, which slowed the country's growth, while noting that his government has always worked to democratise policy and processes.
Citing the example of then Prime Minister Indira Gandhi's decision to nationalise the banks, Prime Minister Modi accused the Congress of further distancing banks and their services from the people of the country.
Addressing the NDTV's World Summit 2025 in New Delhi, PM Modi said, "The people of this country can only truly utilise their potential when the government neither exerts pressure nor interferes in their lives. The more sarkarikaran there is, the slower it will become. The more democratisation there is, the more it will accelerate. Unfortunately, the Congress party, which ruled the country for 60 years, always emphasised the sarkarikaran of the policy processes. In the past 11 years, we have worked to democratise policy and process. This is a major reason behind Unstoppable India."
"Banking is an example of this. In the 60s, then Prime Minister Indira Gandhi said that sarkarikaran was done to make banking services accessible to the poor, farmers, and the common man. But in reality, Congress governments further distanced banks from the people of the country. When our government came to power in 2014, more than half of the country's population did not even have their bank accounts... It was very important for the country to come out of this sarkarikaran, and we made that possible," the Prime Minister stated.