The government calls the 14 October approval a strategic restructuring rather than a disinvestment, with the Centre and LIC continuing to hold stakes in the bank.

BulletsIn

• The Cabinet Committee on Economic Affairs approved the strategic restructuring of IDBI Bank on 14 October 2026, including sale of a 60.72 per cent equity stake.
• The buyer is Canada Inc., whose parent is Prem Watsa's Fairfax Financial Holdings, and the price is ₹52,878 crore.
• The stake being sold comprises 30.48 per cent held by the government and 30.24 per cent held by LIC.
• Finance Minister Nirmala Sitharaman described the deal as strategic restructuring rather than strategic disinvestment.
• The government and LIC will together hold about 34 per cent of the bank after the sale.
• The plan includes a proposed merger of CSB Bank with IDBI Bank within two years, subject to RBI and SEBI approvals.
• The approval does not by itself complete the transfer, as a fit-and-proper review and a compliance roadmap are still required.
• The DIPAM Secretary said the sale is expected to close by the end of the financial year, subject to RBI clearance.
• He called it the largest strategic transaction and said it would attract the highest foreign direct investment.
• Earlier bids received in February 2026 from Fairfax and Emirates NBD fell below the reserve price, and the process was put on hold in March before being revived in April.
• Official sources said the restructuring would bring about ₹26,000 crore to the central exchequer.
• IDBI Bank shares fell more than 7 per cent on 15 October after the approval.