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Union Finance Minister Nirmala Sitharaman has described the approval of IDBI Bank’s strategic restructuring as a milestone in India’s reform journey. The government is moving ahead with the sale of a majority stake in the lender to Canada-based Fairfax Financial Holdings.
“India’s reform trajectory reaches another milestone today with CCEA’s approval of IDBI Bank’s strategic restructuring,” Sitharaman said.
“We are now enabling its next phase of growth through the infusion of Foreign Direct Investment (FDI) while retaining a minority stake,” she added.
Fairfax to Acquire 60.72% Stake in IDBI Bank
The Cabinet Committee on Economic Affairs (CCEA) has approved Fairfax Financial Holdings as the strategic buyer for a 60.72% stake in IDBI Bank for ₹52,878.08 crore. The transaction includes the sale of the Government of India’s 30.48% stake and the Life Insurance Corporation of India’s (LIC) 30.24% stake.
Once completed, the deal is expected to become the largest foreign direct investment transaction in India’s financial services sector.
The proposed transaction marks a significant step in the government’s plan to reduce its ownership in IDBI Bank and bring in a strategic investor. LIC, which is also a shareholder in the bank, is participating in the stake sale alongside the central government.
Transaction Subject to Regulatory Approvals
The transaction will be subject to applicable regulatory and procedural requirements before completion. The proposed restructuring is intended to support IDBI Bank’s next phase of growth while allowing the government to retain a minority stake.
The deal is part of the government’s broader strategy to advance strategic disinvestment and attract foreign capital into India’s financial services sector.
This article was originally
published by the 
