Cabinet approves Fairfax acquisition of 60.72% stake in IDBI Bank

The IDBI Bank sale has been more than five years in the making. According to Business Line, the Cabinet's decision brings that disinvestment process closer to completion.

The sale is part of the government's effort to reduce its ownership of state-run assets and attract private capital into the financial sector, The Hindu reported. The stake being sold is 60.72%, giving the buyer a majority holding.

On October 14, 2026, the Cabinet approved Fairfax as the strategic buyer of IDBI Bank for ₹52,878 crore, according to Indian Express.

The buyer is a subsidiary of Fairfax Financial Holdings, Times now reported. Its coverage gives the transaction's more precise value as ₹52,878.08 crore, while other reports use the rounded ₹52,878 crore figure.

The approved sale covers 60.72% of the bank. The Hindu described the deal as the largest foreign direct investment ever in India's financial sector.

The Cabinet has approved the buyer and bid, but the transaction has not yet been reported as finalised. Business Line said completion is expected before the current fiscal year ends.

That distinction matters: the approval is a major step in the sale process, rather than confirmation that the majority stake has already changed hands.

The next milestone is finalisation of the transaction. The immediate test is whether the sale is completed within the fiscal-year timetable reported by Business Line; the supplied coverage does not give a specific closing date.