Cabinet Committee on Economic Affairs clears sale of 60.72 per cent of IDBI Bank to a Fairfax arm for Rs.52,878.0806181 crore

National Disinvestment Economy & Banking

Cabinet Committee on Economic Affairs clears sale of 60.72 per cent of IDBI Bank to a Fairfax arm for Rs.52,878.0806181 crore

15 October 2026

The Cabinet Committee on Economic Affairs, at its meeting held on 14/10/2026, approved the strategic restructuring of IDBI Bank Ltd. An aggregate 60.72 per cent stake will be sold, made up of 30.48 per cent from the Government of India and 30.24 per cent from LIC. The strategic buyer is 10955230 Canada Inc., whose parent entity is Fairfax Financial Holdings Ltd. The purchase consideration is Rs.52,878.0806181 Crores. After the sale the Government of India retains 15 per cent and LIC retains 19 per cent. The winning best offer bid was Rs.81 per share, above the benchmark of Rs.75.99 per share, which was the average of two independent valuations.

Stake sold: 60.72% Government share sold: 30.48% LIC share sold: 30.24% Purchase consideration: Rs.52,878.0806181 Crores Price per share: Rs.81

Why it matters for exams: The largest bank disinvestment decision of the year, with exact stake percentages and residual holdings that are easy to frame as a question.

Kerala PSCUPSCSSCBank

15 October 2026 Source: Press Information Bureau

In plain words

CCEA Cabinet Committee on Economic Affairs — The Union Cabinet committee that clears major economic and investment decisions.

LIC Life Insurance Corporation of India — The state-owned insurer that had earlier infused capital into IDBI Bank.