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Cabinet Approves Rs 52,878 Crore IDBI Bank Sale to Fairfax Arm in India’s Largest Financial-Sector FDI
The deal would be India’s largest financial-sector foreign direct investment and leave the government and LIC with a 34% stake, officials said.
- On Wednesday, the Union Cabinet approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings for Rs 52,878 crore, marking the country's largest strategic disinvestment since the sale of Air India.
- The strategic restructuring follows IDBI Bank's financial turnaround, with gross non-performing assets declining from 31.78% in 2018 to 2.32% in March 2026, ending a five-year process to reduce Government of India ownership and attract private capital.
- Post-Sale, the government will retain 15% and the Life Insurance Corporation of India 19%, jointly holding 34%, while Fairfax must merge or divest its CSB holding within two years.
- IDBI Bank shares rallied 8.33% on Wednesday, closing at Rs 89.85, as Union Minister Ashwini Vaishnaw stated the partnership creates "growth opportunities for MSMEs, small industries, new entrepreneurs" in India.
- Pending regulatory approvals, the transaction is expected to close before the end of the current fiscal year, positioning Fairfax as the new promoter in a landmark privatisation of state-controlled banks.
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Who Is Prem Watsa? The Investor Behind Fairfax’s Rs 52,878-Crore IDBI Bank Deal
Prem Watsa, the Indian-born billionaire investor widely known as the 'Warren Buffett of Canada', is set to deepen his presence in India's banking sector after the government approved Fairfax's Rs 52,878-crore bid for a controlling stake in IDBI Bank.The acquisition marks a major development in Fairfax's India investment journey, which spans banking, aviation, insurance, travel and financial serv
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The long-debated sale of IDBI Bank has now received Cabinet approval. The government and LIC are selling their stakes in IDBI Bank, which will be acquired by a Canadian company.
Coverage Details
Total News Sources43
Leaning Left7Leaning Right11Center4Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 32%
C 18%
R 50%
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