Sitharaman accuses Opposition of hypocrisy on banking, defends NDA record
Synopsis
Finance Minister Nirmala Sitharaman used a direct X post to turn Akhilesh Yadav's banking critique back on the Samajwadi Party, invoking UPA-era 'phone banking' and IDBI Bank's stressed loans. The exchange crystallises a sharper government strategy: defend the NDA's banking record by making the opposition's own political past the story.
Key Takeaways
Finance Minister Nirmala Sitharaman on 15 October publicly attacked Akhilesh Yadav over his remarks on the banking sector via a post on X.
Sitharaman alleged the Samajwadi Party had backed the UPA government from 2004 onwards and did not question its handling of public sector banks.
She cited IDBI Bank as a specific example of UPA-era loans where principal and interest recovery is still pending.
The Finance Minister credited the NDA government with reviving the banking sector through capital infusion and transparent policies.
She accused the opposition of 'phone banking' and 'crony capitalism,' asking why sympathy for banks emerged only after they were restored to strength.
Union Finance Minister Nirmala Sitharaman on Wednesday, 15 October launched a sharp counter-offensive against Samajwadi Party chief Akhilesh Yadav, accusing him of hypocrisy over his remarks on the banking sector. Sitharaman alleged that Yadav's party had actively backed the United Progressive Alliance (UPA) government — the very administration she holds responsible for pushing public sector banks into a 'precarious condition.'
What Sitharaman Said on X
In a post on X, the Finance Minister directly addressed Yadav, noting that his party had supported the UPA from 2004 onwards. 'Given the dire state in which the UPA left the banks, it is surprising to hear you speak about them today, especially considering that you did not even question your alliance partners back then,' she wrote.
Sitharaman went further, alleging that the allies now forming the opposition INDIA bloc had damaged public sector banks through what she termed 'phone banking' and 'crony capitalism' — phrases the ruling National Democratic Alliance (NDA) has repeatedly deployed against the previous dispensation.
IDBI Bank Cited as Case Study
The Finance Minister singled out IDBI Bank as a specific example, stating that during the UPA tenure — which the Samajwadi Party supported — the bank extended loans to individuals from whom the government is reportedly still struggling to recover both principal and interest. The reference is pointed: IDBI Bank has been at the centre of ongoing discussions around privatisation and legacy stressed assets.
NDA's Claim on Banking Sector Revival
Sitharaman contrasted the UPA record with the NDA government's performance, asserting that the administration led by Prime Minister Narendra Modi has revitalised the banking sector through transparent policies and capital infusion. She pointed to the improved financial health of public sector banks as evidence of this turnaround — a claim the government has made consistently in recent years, citing declining non-performing assets (NPAs) and rising profitability across state-owned lenders.
Questioning the timing of Yadav's concern, Sitharaman asked: 'It is remarkable — now that the banks are in a strong position, why are you feigning such sympathy? Why these crocodile tears?'
Political Context and Broader Significance
The exchange is part of an intensifying political battle over economic legacy, with both the government and the opposition seeking to define the narrative around banking sector governance ahead of upcoming electoral cycles. Notably, public sector banks have posted record profits in recent years, a data point the NDA has leveraged repeatedly. Critics, however, argue that the NPA resolution came partly through write-offs and asset reconstruction rather than genuine recovery — a distinction the government contests.
This is not the first time Sitharaman has used social media to rebut opposition claims on the economy; the Finance Minister has made X a key platform for direct political communication. The broader debate over phone banking, crony lending, and NPA origins remains unresolved in the public discourse, even as the headline numbers for bank health have improved.
With the INDIA bloc continuing to press on economic governance, the government is expected to sharpen its messaging on banking reform in the weeks ahead.
Point of View
The NDA has a genuine data story to tell; the risk is that the opposition pivots to the quality of NPA resolution rather than the headline numbers. The invocation of 'phone banking' and IDBI Bank is designed to keep the debate on UPA-era conduct rather than NDA-era write-offs. What this exchange reveals is that the banking sector — once a liability for the ruling coalition — has become an asset it intends to fight on, not retreat from. The test will be whether the INDIA bloc can shift the conversation to recovery rates and bank privatisation timelines, where the government's record is more contested.
NationPress
15 Oct 2026
Frequently Asked Questions
Why did Nirmala Sitharaman criticise Akhilesh Yadav on banking?
Sitharaman criticised Yadav on 15 October after he made remarks on the banking sector, accusing him of hypocrisy because his Samajwadi Party had supported the UPA government from 2004 onwards — the administration she holds responsible for leaving public sector banks in poor health. She argued his concern was selective and belated.
What did Sitharaman allege about the UPA and public sector banks?
She alleged that UPA-era allies who now form the opposition INDIA bloc had damaged public sector banks through 'phone banking' and 'crony capitalism.' She specifically cited IDBI Bank, claiming loans extended during that period have still not been fully recovered.
What is 'phone banking' in this political context?
'Phone banking' is a term the NDA has used to allege that during the UPA era, influential individuals secured bank loans through political phone calls to bank officials rather than on merit. The government has repeatedly cited this practice as a key driver of the NPA crisis in public sector banks.
How does the NDA claim to have improved the banking sector?
Sitharaman asserted that the NDA government revitalised the banking sector through capital infusion and transparent policies, pointing to improved financial health indicators such as declining non-performing assets and rising profitability in public sector banks.
What broader political context surrounds this exchange?
The remarks come amid ongoing political exchanges between the NDA government and the opposition INDIA bloc over economic governance, including the health of public sector banks and recovery of stressed assets. With electoral cycles approaching, both sides are competing to set the narrative on India's banking sector track record.
