New Delhi, October 15, 2026: Canada’s Fairfax Financial Holdings is set to acquire a controlling stake in IDBI Bank after the Centre approved the sale of a combined 60.72% holding by the government and Life Insurance Corporation of India (LIC) for ₹52,878 crore. The transaction, once completed, will transfer control of the bank to the Fairfax-backed buyer, while the government and LIC will retain a combined 34% stake.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved 10955230 Canada Inc., whose parent company is Fairfax Financial Holdings Ltd., as the strategic buyer on October 14. According to the Ministry of Finance, the transaction would become India’s largest foreign direct investment (FDI) in the financial sector upon completion.
Under the approved arrangement, the central government will sell 30.48% of its stake in IDBI Bank, while LIC will sell 30.24%. Following the transaction, the government will retain a 15% holding and LIC will hold 19%, making them minority shareholders.
The government and LIC will also withdraw their nominees from IDBI Bank’s board and become public shareholders once the transaction is completed. This will transfer management control to the new strategic investor despite the two institutions retaining a combined 34% holding.
Fairfax’s winning bid values IDBI Bank shares at ₹81 each, above the benchmark price of ₹75.99 determined through independent valuations. The government said the offer was considered reasonable following an evaluation of the qualified bids.
The approved transaction is part of the government’s long-running effort to restructure IDBI Bank and bring in a private strategic investor. However, the Cabinet’s approval does not mean the ownership transfer has been completed.
The buyer must meet the applicable regulatory requirements, including submitting its credentials and a compliance plan to the Reserve Bank of India (RBI) in accordance with conditions prescribed during the earlier assessment process.
IDBI Bank had faced serious financial difficulties in previous years, including high levels of bad loans and repeated capital requirements. In May 2017, the RBI placed the bank under its Prompt Corrective Action framework, which imposed restrictions on certain banking activities.
The RBI removed those restrictions in March 2021 following improvements in the bank’s financial position, subject to conditions and continued monitoring.
The Centre has also approved a mechanism for the possible future sale of its remaining 15% stake through the open market. LIC will be able to manage its residual 19% holding according to its internal procedures and applicable regulations.
The ₹52,878 crore deal will give the Fairfax-backed investor majority ownership and management control of IDBI Bank once completed. The transfer remains subject to the buyer fulfilling the required regulatory conditions.
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