Banking
Govt Approves IDBI Bank Sale to Fairfax; 60.72% Stake for ₹53,000 Crore
14 October 2026 · Mint
The Union Cabinet approved the privatisation of IDBI Bank, with Canada's Fairfax Financial Holdings acquiring a 60.72% stake for about ₹53,000 crore. Government and LIC will both withdraw their nominee directors from the board.
Points to Remember
- Fairfax entity M/s 10955230 Canada Inc. approved as strategic buyer; offer price ₹81 per share against benchmark ₹75.99 per share.
- % sold: GoI stake 30.48% and LIC stake 30.24%; proceeds split in same proportion.
- Post-deal, government stake falls from 45.5% to 15% and LIC stake from 49.2% to 19%.
- Valuation used market multiple method based on closing accounts of all public sector banks as of 31 March 2026, as IDBI's price fluctuated between ₹61.01 and ₹118.38.
- IDBI Bank was placed under PCA in 2017; LIC infused ₹21,624 crore in 2019, after which RBI reclassified it as a private-sector bank.
Why it matters
This is the largest cross-border bank deal in India and changes IDBI Bank's ownership structure — with Fairfax taking control, expect a new board, fresh capital infusion and a shift in the bank's strategy that could reshape the competitive landscape in banking.
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