India clears biggest bank privatisation since Air India sale, ₹52,878-crore IDBI Bank stake sale to Fairfax
What Happened
The Union Cabinet has approved Canada-based Fairfax Financial Holdings’ subsidiary as the strategic buyer for a 60.72% stake in IDBI Bank for ₹52,878 crore. The Centre will sell 30.48%, while LIC will divest 30.24%. Together, the government and LIC will retain a 34% stake after the transaction.
Key Takeaways
The transaction is set to transfer control of IDBI Bank to Fairfax and, once completed, the government says it will be the largest FDI transaction in India’s financial sector. It also marks the country’s biggest strategic disinvestment since Air India.