The Cabinet Committee on Economic Affairs has cleared the strategic sale of IDBI Bank, ending a process that began years ago.

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• The Cabinet Committee on Economic Affairs, chaired by PM Narendra Modi, approved the sale of a 60.72% stake in IDBI Bank Limited.
• The stake is valued at Rs 52,878.08 crore, and the buyer is a Canadian subsidiary of Fairfax Financial Holdings.
• The Centre and Life Insurance Corporation of India are jointly selling the stake along with management control.
• The Centre is selling 30.48% and LIC is selling 30.24%.
• Reports put Fairfax's offer at Rs 81 per share after it raised an earlier bid of Rs 75.
• The sale needs RBI's fit-and-proper clearance and approvals from the Competition Commission of India and other authorities.
• Fairfax's Indian unit already holds a 40% stake in CSB Bank, which regulators are expected to examine.
• The CCEA had given in-principle approval for IDBI's strategic disinvestment in May 2021.
• IDBI was classed as a private sector bank in 2019 after LIC acquired a controlling 51% stake for Rs 21,624 crore.
• The process was paused in March after bids from Fairfax and Emirates NBD fell below the government's reserve price.
• Bank unions have opposed the sale and planned a black-badge protest on October 16.

Tags: IDBIBank, Disinvestment, FairfaxFinancial