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The cabinet approved sale of 60.72% stake in IDBI Bank to Prem Watsa's Fairfax Financial for ₹52,878 crore, India's largest FDI deal in financial sector
By ScoutQuest · · 1 min read
- Stake sold to Fairfax
- 60.72 percent
- Deal value
- 52,878 crore rupees
- Government stake after deal
- 15 percent
- LIC stake after deal
- 19 percent
- Combined retained stake
- 34 percent
Heard on business television between 13:08:04 - 13:11:04 IST.
- Government's stake in IDBI Bank will fall from 45.48% to 15%, while LIC's stake will decline from 49.24% to 19%; Fairfax takes control with both retaining a combined 34%.
- Fairfax must bring its stake down to 26% within 15 years; the deal is India's largest FDI deal in the financial sector.
- Fairfax already owns ~40% of CSB Bank, raising a regulatory question under RBI rules on owning two competing banks; it must resolve the overlap within two years, either by selling the CSB stake or merging CSB with IDBI Bank.
- Winning bid of ₹81 per share was 6.6% above the independent valuation benchmark but 10.4% below IDBI Bank's October 14th closing price; only ~5% of IDBI Bank is in public hands, limiting the market price as a benchmark.
- Key triggers to watch: RBI approval, how Fairfax funds the deal and its CSB Bank plan, and whether new ownership can improve profitability without weakening asset quality.
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Source: Live TV News Channel · 15 Oct 2026
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