From mint · Mint Editorial Board · · 1m 20s
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.
In brief
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 IDBI Bank to Fairfax Financial for ₹52,878 crore to meet fiscal targets and reduce state ownership. Originally reported by mint.
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.
At a glance
India's government sold 61% of IDBI Bank to Fairfax Financial for ₹52,878 crore to meet fiscal targets and reduce state ownership.
