Important StoriesCCEA approves IDBI Bank stake sale to Fairfax for ₹52,878 crore; govt, LIC to receive proceedsIndia plans BS-VII emission norms for new cars and SUVs from April 2029India Inc salary hikes set to improve in 2027; NBFCs lead at 10.1%Ahead of Musk in satcom queue, will be happy to get nod at least few days before him: Sunil MittalIndia needs ₹15 lakh cr investment to add 91 GW nuclear capacity by 2047: CEA chairmanFollow 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 IDBI Bank stake sale to Fairfax for ₹52,878 crore; govt, LIC to receive proceeds 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 By BL New Delhi Bureau Updated - October 14, 2026 at 05:11 PM. | New Delhi ×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/cabinet-approves-sale-of-6072-stake-in-idbi-bank-to-fairfax-for-52878-crore/article71583485.eceCopy Government on Tuesday announced ‘Strategic Restructuring’ of IDBI Bank by offering over 60 per cent shares with management control to Canada Inc. | Photo Credit: ADNAN ABIDI

Government on Tuesday announced ‘Strategic Restructuring’ of IDBI Bank by offering over 60 per cent shares with management control to Canada Inc. This is the biggest foreign direct investment in India till date.

“The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on October 14 approved Canada Inc. (parent entity M/s Fairfax Financial Holdings Ltd.) as the Strategic Buyer for this Transaction for a purchase consideration of ₹52,878 crores for the acquisition of 60.72 per cent stake in the IDBI Bank Ltd, comprising 30.48 per cent equity shareholding held by the Gol and 30.24 cent equity shareholding held by the LIC,” a Finance Ministry statement said.

Further, 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. Once completed, this will be the largest FDI in the financial sector of our economy so far.

The CCEA has also delegated powers to the Alternative Mechanism to undertake minority stake sales of the GoI residual shareholding (15 per cent of the total shareholding of the IDBI Bank Ltd.) through the open market in accordance with the standard operating procedure. The LIC will be free to manage its residual shareholding in accordance with its internal procedures while ensuring compliance with the directions of its regulators,” the statement added.

Government on Tuesday announced ‘Strategic Restructuring’ of IDBI Bank by offering over 60 per cent shares with management control to Canada Inc. This is the biggest foreign direct investment in India to date. “The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on October 14 approved Canada Inc. (parent entity M/s Fairfax Financial Holdings Ltd.) as the Strategic Buyer for this Transaction for a purchase consideration of ₹52,878 crores for the acquisition of 60.72 per cent stake in the IDBI Bank Ltd, comprising 30.48 per cent equity shareholding held by the Gol and 30.24 cent equity shareholding held by the LIC,” a Finance Ministry statement said. Further, 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 complying with the regulatory conditions prescribed therein. Once completed, this will be the largest FDI in our economy’s financial sector so far. The CCEA has also delegated powers to the Alternative Mechanism to sell the GoI residual shareholding (15 per cent of the total shareholding of IDBI Bank Ltd.) through the open market, in accordance with the standard operating procedure. The LIC will be free to manage its residual shareholding in accordance with its internal procedures while ensuring compliance with the directions of its regulators,” the statement added.

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