On 2026-10-14, the Cabinet Committee on Economic Affairs (CCEA) gave its approval for the sale of a 60.72 percent stake in IDBI Bank. The transaction is valued at ₹52,878 crore, a figure cited across the three sources summarising the decision. This green signal from the central cabinet clears the way for the ownership change to move forward, pending any further regulatory clearances that may be required.
One source identifies the purchaser as Fiera Financial Holdings of Canada, while the other two refer to Fairfax Financial Holdings. Regardless of the naming variance, the agreed stake to be transferred is 60.72 percent of the bank’s equity. After the sale, the government of India will retain a 30.48 percent share, and the Life Insurance Corporation of India (LIC) will hold 30.24 percent. These retained percentages mean that, even after the deal, the public sector will still hold a combined majority of just over 60 percent in IDBI Bank.
🔰Government Approves Strategic Restructuring of IDBI Bank Ltd. ▪️ The Cabinet Committee on Economic Affairs (#CCEA) approved the strategic restructuring of #IDBIBank Ltd. ▪️ An aggregate 60.72% equity stake in IDBI Bank Ltd. will be sold to a Strategic Buyer, comprising 30.48% held by the Government of India (GoI) and 30.24% held by LIC. ▪️ Following the transaction, the GoI will retain a 15% stake, and LIC will retain a 19% stake in IDBI Bank Ltd. @FinMinIndia @IDBI_Bank
The sources describe the divestment as part of a broader strategic restructuring for IDBI Bank, driven by its poor financial health. Offloading a controlling stake is intended to strengthen the bank’s growth prospects and to align with the government’s long‑term plan to reduce its presence in public sector banks. By bringing in a private investor, the authorities hope to infuse fresh capital and management expertise that can help the bank overcome its current challenges.
These retained percentages mean that, even after the deal, the public sector will still hold a combined majority of just over 60 percent in IDBI Bank.
Although the CCEA has cleared the deal, the sources note that the transaction remains subject to regulatory approvals and the completion of customary closing conditions. The government and LIC will continue to hold their respective stakes until the sale is finalised. Once all approvals are secured and the transfer of shares is completed, the new ownership structure will take effect, marking a significant milestone in India’s ongoing bank privatisation agenda.
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