Cabinet approves Fairfax’s ₹52,878-crore bid for IDBI Bank; largest FDI ever in India’s financial sector
The Indian Cabinet has approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings for ₹52,878 crore. This deal marks the largest foreign direct investment in India's financial sector and represents a major step in the government's privatization strategy.
Why it matters
The privatization of IDBI Bank signals a significant shift in India's banking landscape and the government's commitment to reducing state-run assets.
The Cabinet on Wednesday (October 14, 2026) approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings for ₹52,878 crore, in the country's biggest strategic disinvestment since the sale of Air India and potentially opening a new chapter in the privatisation of state-controlled banks.
The decision by the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, brings to a close a process that has stretched over five years, marking a significant step in the government's efforts to reduce its ownership of state-run assets and attract private capital into the financial sector.
"Once completed, this will be the largest FDI in the financial sector of our economy so far," the government said in a statement.
Information and Broadcasting Minister Ashwini Vaishnaw also briefed the media about the Cabinet decision on the IDBI Bank's strategic restructuring.
Also covering this story
2 other newsrooms covered this event. We read each version separately.
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