# IDBI Bank sale to Fairfax marks government's disinvestment milestone

> India's government completes long-awaited IDBI Bank stake sale to Canadian Fairfax for ₹52,878 crore, hitting fiscal targets.
- Title: IDBI Bank sale to Fairfax marks government's disinvestment…
- Summary: India's government completes long-awaited IDBI Bank stake sale to Canadian Fairfax for ₹52,878 crore, hitting fiscal targets. India's government sold 61% of…
- Keywords: idbi bank, fairfax financial, disinvestment, india government, fiscal targets, stake sale, rbi, news, india, IDBI, Bank, sale
- Source: mint — https://livemint.com/opinion/online-views/idbi-bank-to-be-bought-by-fairfax-a-double-score-move-by-the-government-11792072947506.html
- Author: Mint Editorial Board
- Published: 2026-10-16T02:31:02+00:00
- Read time: 1 min
- Topics: idbi bank, fairfax financial, disinvestment, india government, fiscal targets, stake sale, rbi, news, india
## Government finalizes IDBI Bank sale
The Centre approved selling 61% of IDBI Bank to Canadian billionaire Prem Watsa's Fairfax Financial Holdings for ₹52,878 crore.
## Fairfax pays premium price
Fairfax will pay ₹81 per share, higher than the ₹75.99 average of two independent valuations.
## Government achieves fiscal goals
The deal meets India's annual disinvestment target for the first time since 2018-19 and raises ₹80,000 crore this fiscal year.
## State ownership reduced
Fairfax will take 30% from government and 19% from Life Insurance Corporation of India, leaving the bank with 15% state ownership.
## Foreign investment boost
The sale brings foreign direct investment to India's capital account, aiding fiscal math during energy subsidy crises.
## RBI data on banking sector
India has 12 public sector banks accounting for 55% of all assets and a significant share of deposits as of December 2025.
## CSB Bank merger likely
Fairfax may merge IDBI Bank with its existing stake in CSB Bank due to RBI regulations preventing dual bank operations.
## Key takeaway

India's government sold 61% of IDBI Bank to Fairfax Financial for ₹52,878 crore to meet fiscal targets and reduce state ownership.