Business · Companies · 1 hr ago
Government defends IDBI Bank sale process, citing ₹3,917 crore increase
The government says its IDBI Bank sale process raised the deal value by ₹3,917 crore.
The proposed sale involves a combined 60.72% stake in the bank going to Canadian investment firm Fairfax Financial Holdings, for about ₹53,000 crore, or ₹81 per share.
The government says the reserve price was not changed during the process.
Earlier bids were not approved because they were below the reserve price, and the government then invited fresh bids and used two valuation methods.
Rahul Gandhi has backed employees protesting the sale, criticising the government’s decision and saying he stands with the bank’s workers.
The government says the sale is a strategic restructuring and that officials reviewed the valuation and bidding process.
The sale has been approved by the Cabinet committee, but the sources do not say when the transaction will be completed.
India’s Finance Ministry defended the valuation and bidding process for the sale of a 60.72% stake in IDBI Bank, saying it added ₹3,917 crore to the transaction value.
The Cabinet Committee on Economic Affairs approved the sale to Canada’s Fairfax Financial Holdings on October 14, at ₹81 per share and a transaction value of around ₹53,000 crore.
The ministry said the reserve price was not changed and that the first bidding round ended after the initial bids were not approved.
Congress leader Rahul Gandhi criticised the sale and said he supported IDBI Bank employees amid protests.
- Who
- India’s Finance Ministry defended the process. The buyer is Fairfax Financial Holdings.
- What
- The government is selling a combined 60.72% stake in IDBI Bank. The ministry said the process increased the transaction value by ₹3,917 crore.
- When
- The CCEA approved the sale on October 14. The ministry’s defence was reported on October 30, 2026.
- Where
- India; the transaction concerns IDBI Bank.
- Why
- The government described the sale as part of a strategic restructuring. The sources do not state a more specific reason.
India’s government
Rahul Gandhi and protesting IDBI Bank employees
Aspect
India’s government
India’s government’s view
Rahul Gandhi and protesting IDBI Bank employees
Rahul Gandhi and protesting IDBI Bank employees’ view
Sale
India’s government
The government defended the strategic sale and its valuation process.
Rahul Gandhi and protesting IDBI Bank employees
Gandhi criticised the decision to sell the stake and said he stood with the employees.
Valuation and bidding
India’s government
The government said the reserve price was unchanged and the process added ₹3,917 crore to the deal value.
Rahul Gandhi and protesting IDBI Bank employees
Gandhi questioned the sequence of bidding and price-setting; the sources do not give a detailed employee position on the valuation.
The initial bidding round was conducted by the Department of Investment and Public Asset Management.
The Core Group of Secretaries on Disinvestment examined the valuation methodology before the best-offer round.
Valuation agencies began updated assessments after the financial accounts for the year ended March 31, 2026, became publicly available.
The Cabinet Committee on Economic Affairs approved the sale of a combined 60.72% stake in IDBI Bank to Fairfax Financial Holdings.
The Finance Ministry defended the valuation and bidding process, while Rahul Gandhi voiced support for IDBI Bank employees.
- Increase cited by ministry
- ₹3,917 crore
- Stake approved for sale
- 60.72%
- Approved bid price
- ₹81 per share
- Transaction value
- Around ₹53,000 crore
- Buyer
- Fairfax Financial Holdings
- Reserve price
- Not changed
3 sources
What people are saying
The reserve price was neither decreased nor increased, and the first round itself became functus officio after the initial bids were not approved
I stand with the employees of IDBI Bank
During Congress's time, banks were being created. During Modi's time, they are being sold.