IDBI Bank stake sale: CCEA clears 60.72% sale to Fairfax for ₹52,878 crore
Why in the news
On 14 October 2026, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the strategic sale of a 60.72% stake in IDBI Bank to the parent of Fairfax Financial Holdings.
Key facts
- Buyer: 10955230 Canada Inc., parent entity of Fairfax Financial Holdings Ltd.
- Price: ₹81 per share, above the ₹75.99 valuation benchmark (average of two independent valuers).
- Deal value: ₹52,878.08 crore.
- Earlier bids had fallen short of the ₹94.42 reserve price and were not approved; fresh best-offer bids were invited in 2026-27.
- The buyer must still clear the RBI fit-and-proper assessment.
- Once complete, the government calls it the largest FDI in India’s financial sector so far.
| Seller | Stake sold | Stake retained |
|---|---|---|
| Government of India | 30.48% | 15% |
| LIC | 30.24% | 19% |
| Total | 60.72% | 34% |
About IDBI Bank
It began on 1 July 1964 as the Industrial Development Bank of India and became a banking company in 2004. LIC completed buying a 51% stake in January 2019, after which RBI reclassified it as a private-sector bank. RBI had put it under Prompt Corrective Action on 5 May 2017 and lifted the curbs in March 2021. For FY ended March 2026, net profit was ₹9,513 crore and gross NPAs were 2.32%. The expression of interest for the sale was issued on 7 October 2022.
Exam angle
- Stake sold: 60.72%; price ₹81 per share; value ₹52,878.08 crore.
- Approving body: CCEA, chaired by the Prime Minister.
- The CCEA authorised the Alternative Mechanism to sell the Centre’s remaining 15% through the open market.