Important StoriesCCEA approves strategic restructuring of IDBI Bank, govt & LIC to get over ₹52,000 croreJio Platforms IPO: Issue opens on October 21, anchor bidding on October 19India plans BS-VII emission norms for new cars and SUVs from April 2029Delhi SIR case: SC agrees to ‘take care of’ ECI move to restore deleted voters as fresh votersIndia-Mauritius tax treaty amended to curb treaty abuse; PPT test introducedFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. CCEA approves strategic restructuring of IDBI Bank, govt & LIC to get over ₹52,000 crore The government is offloading 30.48 per cent of its stake and expected to get over ₹26,500 crore, while LIC to sell 30.24 per cent and likely to get over ₹26,300 crore By Shishir Sinha Updated - October 14, 2026 at 10:16 PM. | New Delhi ×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/ccea-approves-strategic-restructuring-of-idbi-bank-govt-amp-lic-to-get-over-52000-crore/article71583495.eceCopy Union Finance and Corporate Affairs Minister Nirmala Sitharaman

The Union Cabinet on Wednesday approved the sale of a 60.72 per cent stake in IDBI Bank to Canada-based Fairfax Financial Holdings Ltd. This is the biggest foreign direct investment in India’s financial sector till date, involving an amount of over ₹52,000 crore.

“The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on October 14 approved Canada Inc. (parent entity Fairfax Financial Holdings Ltd.) as the strategic buyer for this transaction for a purchase consideration of ₹52,878 crore for the acquisition of 60.72 per cent stake in the IDBI Bank Ltd,” a Finance Ministry statement said.

IDBI Bank stake sale to push MCR receipts beyond ₹90,000 crore, providing fiscal relief

Under the process, the winning bid was ₹81 per share. The government is offloading 30.48 per cent of its stake and expected to get over ₹26500 crore, while LIC to sell 30.24 per cent and likely to get over ₹26,300 crore. The deal is expected to be completed by the end of the fiscal year. After the completion of the deal, the government will have residual shareholding of 15 per cent and the LIC will have 19 per cent. Neither the government nor the LIC will have seat on the board of IDBI Bank. Also, they will not have any contingent liability. LIC will have to dilute 4 per cent stake in IDBI bank within two years to retain ownership of LIC Housing Finance.

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Assuring the employees that the strategic sale has no material impact on their well-being, Finance Minister Nirmala Sitharaman said, “during the last one and half year, DIPAM (Department of Investment and Public Asset Management) Secretary talked to every union. Employees have nothing to worry.” Adding to this, DIPAM Secretary Arunish Chawla said that service conditions of employees are determined by the board and they will remain the same. Pension is paid out of a dedicated fund and the same mechanism will continue

From 31% bad loans to a sale-ready bank: How IDBI got here

RBI regulations prescribe that a company cannot hold ownership of two banks. As on date, FIH Mauritius Investments Ltd a wholly owned subsidiary of Fairfax India Holdings Corporation and holds 40 per cent in CSB Bank (Formerly known as Catholic Syrian Bank). Fairfax has been given two years’ time either to merge CSB with IDBI Bank or offload its holding in CSB. Also, Fairfax will have five-year lock-in for its holding in IDBI Bank. However, going by the RBI regulation, Fairfax has to bring down its holding in the IDBI bank to 24 per cent.

Fairfax faces CSB conundrum after winning IDBI Bank bid; Merger emerges as likely route

According to a Finance Ministry statement, the successful bidder will be required to present its credentials to the Reserve Bank of India in accordance with the fit and proper assessment conducted at the EoI stage and submit its roadmap for the compliance of regulatory conditions prescribed therein.

IDBI exit brings ₹26,337 crore to LIC, but limited upside for shareholders

“Having supported the bank’s recovery, we are now enabling its next phase of growth through the infusion of foreign direct investment while retaining a minority stake. This will not only strengthen the banking ecosystem but also help banking services surpass global benchmarks,” Sitharaman said, adding that it reinforces that India’s growth story is strong, its economy is resilient, and the government’s commitment to reform is unwavering.

“With an unshakable resolve toward economic transformation, we are shaping a future-ready financial sector dedicated to empowering customers, backing entrepreneurs, and fuelling the vision of a Viksit Bharat,” she said in a social media post.

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