IDBI Bank gets a new owner? Cabinet clears ₹52,878 crore Fairfax deal, what changes for customers

The Union Cabinet has approved the strategic restructuring of IDBI Bank, clearing the sale of a 60.72 per cent stake to Canada's Fairfax Financial Holdings for approximately ₹52,878 crore. The government and LIC will retain minority holdings, with the transaction expected to be completed by March 2027.

The Union Cabinet on Wednesday, October 14, approved the strategic restructuring of IDBI Bank, clearing the sale of a 60.72 per cent stake to Canada’s Fairfax Financial Holdings for approximately ₹52,878 crore. The deal will transfer majority ownership and management control of the lender to the Canadian investment group, marking a major development in India’s banking sector. Fairfax, led by Indian-Canadian billionaire Prem Watsa, emerged as the successful bidder after a lengthy sale process.

The transaction is being described as India’s largest foreign direct investment in the financial sector. Finance Minister Nirmala Sitharaman called the decision a strategic restructuring, pointing out that the government and Life Insurance Corporation of India (LIC) would continue holding minority stakes in the bank. The announcement brings fresh momentum to a process that began several years ago and........

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