Business · Companies · 27 mins ago
Cabinet approves Fairfax deal to buy 60.72% of IDBI Bank
India’s Cabinet has approved the sale of a 60.72% stake in IDBI Bank to Fairfax for ₹52,878 crore.
The stake will come from the Indian government and Life Insurance Corporation of India, which currently hold 45.5% and 49.2% of the bank.
After the sale, the government will retain 15% and LIC 19%, giving them a combined 34% stake.
The transaction is described as India’s largest foreign investment in its financial sector.
IDBI Bank had faced serious financial problems and was placed under the Reserve Bank of India’s corrective framework in 2017, but its bad-loan ratio and profits have since improved.
The bank’s financial health has improved since LIC took control in 2019 and it became classified as a private-sector bank.
The deal still requires the buyer to meet RBI regulatory conditions, and the share purchase agreement is expected to be signed before the end of 2026.
The Union Cabinet approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings’ subsidiary for ₹52,878 crore.
The government and Life Insurance Corporation of India (LIC) will sell 30.48% and 30.24% stakes, respectively.
After the transaction, the government will retain 15% and LIC 19% of the bank.
The government described the deal as a strategic restructuring and said it would be India’s largest foreign investment in the financial sector.
The transaction remains subject to regulatory requirements, including a “fit and proper” assessment by the Reserve Bank of India.
- Who
- Fairfax Financial Holdings’ subsidiary, M/s 10955230 Canada Inc., is the approved buyer. The government and LIC are selling shares.
- What
- The Cabinet approved the sale of a combined 60.72% stake in IDBI Bank for ₹52,878 crore.
- When
- The approval was announced on October 14, 2026.
- Where
- India.
- Why
- The government said the transaction was a strategic restructuring of IDBI Bank. The articles do not state a more specific reason for approving it.
This story does not have two clearly opposing sides.
The government issued a preliminary information memorandum inviting expressions of interest in the sale.
The Reserve Bank of India placed IDBI Bank under its Prompt Corrective Action framework.
LIC took over a controlling stake in the bank after infusing ₹21,624 crore.
The Union Cabinet approved the sale of a combined 60.72% stake to Fairfax’s subsidiary.
The share purchase agreement is expected to be signed and executed.
- Sale price
- ₹52,878 crore
- Stake sold
- 60.72%
- Government stake sold
- 30.48%
- LIC stake sold
- 30.24%
- Fairfax bid
- ₹81 per share
- Retained stakes
- Government 15%; LIC 19%
5 sources
Fairfax Financial buying majority stake in India's IDBI Bank for $7.9 billion
Fairfax Financial buys majority stake in India’s IDBI Bank for $5.56-billion
Largest-ever FDI in India’s financial sector: Cabinet approves sale of IDBI Bank to Fairfax for ₹52,878 crore
Fairfax to buy 60.72% stake in IDBI Bank for Rs 52,878 crore, announces govt
Cabinet approves Rs 52,878 crore IDBI Bank sale to Fairfax arm in India’s largest financial-sector FDI
What people are saying
We need organisations that can meet growth capital for entrepreneurs
The government continues to stay invested in IDBI. We still have a 15% stake