Govt approves IDBI Bank stake sale to Fairfax for Rs 52,878 crore

After the transaction, the government will retain a 15% stake in the bank, while LIC will hold 19%. Their combined shareholding will stand at 34%.The sale process for IDBI Bank was first announced in 2022 but faced delays due to regulatory and procedural hurdles. New Delhi,Oct 14, 2026 17:05 ISTThe Union Cabinet on Wednesday approved the sale of a 60.72% stake in IDBI Bank to a subsidiary of Canadian financial services company Fairfax Financial Holdings for Rs 52,878.08 crore.The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved Fairfax as the strategic buyer for the bank. The deal involves the sale of the government's 30.48% stake and Life Insurance Corporation of India's (LIC) 30.24% holding in IDBI Bank.After the transaction, the government will retain a 15% stake in the bank, while LIC will hold 19%. Their combined shareholding will stand at 34%.Union Minister Ashwini Vaishnaw said the transaction, once completed, would be the largest foreign direct investment (FDI) in India's financial sector. The sale followed a two-stage competitive bidding process overseen by several government bodies, including the Inter-Ministerial Group, the Core Group of Secretaries on Disinvestment and an empowered group of Cabinet ministers.The sale process for IDBI Bank was first announced in 2022 but faced delays due to regulatory and procedural hurdles. It was put on hold in March after bids failed to meet the government's price expectations. - Ends