IDBI Bank has finalized the sale of a 60.72% stake to Fairfax Financial Holdings for ₹52,878.08 crore, marking the culmination of a multi‑year privatization drive.
The deal follows the bank’s exit from the RBI’s Prompt Corrective Action framework in March 2021, the Cabinet’s approval of a strategic sale in May 2021, and the government’s launch of the stake sale in October 2022.
RBI cleared Fairfax, Emirates NBD, and Kotak Mahindra Bank for fit‑and‑proper assessment in August 2024, a prerequisite that was met after the Ministry of Home Affairs and RBI screening.
Fairfax’s final bid, submitted in July 2026, met the government’s reserve price, ending a series of revised offers that had previously fallen short in February 2026.
The transaction places Fairfax in control of the lender’s management, while LIC retains its remaining 30.24% stake. Investors now anticipate a period of strategic realignment and potential capital infusion.
The bank is slated to publish its next quarterly results on October 15 2026, which will offer insight into how Fairfax’s ownership will shape profitability.