The Cabinet Committee on Economic Affairs has approved Fairfax Financial Holdings' parent entity as the strategic buyer for IDBI Bank in a deal worth about Rs 52,878 crore.

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• The Cabinet Committee on Economic Affairs, in its meeting on 14 October 2026, approved 10955230 Canada Inc., whose parent is Fairfax Financial Holdings, as strategic buyer for IDBI Bank.
• The sale covers a 60.72% stake for about Rs 52,878 crore, made up of 30.48% held by the Government of India and 30.24% held by LIC.
• After the sale, the government will retain 15% and LIC 19%, a combined 34% shareholding in the bank.
• The winning offer of Rs 81 per share was above the benchmark valuation of Rs 75.99.
• The transaction is described as the largest foreign direct investment in India's financial sector to date.
• The process followed a two-stage competitive bidding route with security clearance and assessment by the Reserve Bank of India.
• The successful bidder must present its credentials to the RBI under fit-and-proper requirements and submit a compliance roadmap.
• The CCEA has empowered the Alternative Mechanism to sell the government's residual 15% later through the open market under standard procedures.
• LIC may manage its residual holding under its own procedures and regulator directions.
• The Finance Ministry said privatisation will have a significantly positive effect on the banking and financial sector of the economy.