CCEA approves sale of 60.72% stake in IDBI Bank to Fairfax for about ₹52,878 crore

📅 14 October 2026 📍 India Must know

On 14 October 2026, the CCEA approved 10955230 Canada Inc. (parent: Fairfax Financial Holdings) as strategic buyer of a 60.72% stake in IDBI Bank at ₹81 per share, for about ₹52,878 crore.

Summary

The Cabinet Committee on Economic Affairs (CCEA), on 14 October 2026, approved M/s 10955230 Canada Inc., whose parent is Canada's Fairfax Financial Holdings, as the strategic buyer of IDBI Bank Ltd. The buyer will acquire 60.72% equity (30.48% from the Government of India and 30.24% from LIC) for a purchase consideration of about ₹52,878.08 crore, based on a winning bid of ₹81 per share against a benchmark fair value of ₹75.99. After the deal the Government will keep 15% and LIC 19%. The Government says that, once completed, it will be the largest FDI in India's financial sector so far; the buyer must still complete RBI's fit-and-proper process.

Key facts

Approved by: Cabinet Committee on Economic Affairs (CCEA), 14 October 2026
Strategic buyer: M/s 10955230 Canada Inc. (parent: Fairfax Financial Holdings Ltd.)
Stake sold: 60.72% (GoI 30.48% + LIC 30.24%)
Winning bid: ₹81 per share (benchmark fair value ₹75.99)
Purchase consideration: ₹52,878.08 crore (approx.)
Residual holding: GoI 15%, LIC 19%
PCA history: RBI put IDBI Bank under PCA on 5 May 2017; restrictions lifted on 10 March 2021
EoI issued: 7 October 2022
Significance: Largest FDI in India's financial sector (on completion)

Practice MCQs 5 questions

In October 2026, a subsidiary of which company was approved as the strategic buyer of IDBI Bank?

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Correct answer: A — Fairfax Financial Holdings

PIB (PRID 2323468): CCEA approved M/s 10955230 Canada Inc., parent entity Fairfax Financial Holdings Ltd., as the strategic buyer.

What aggregate equity stake in IDBI Bank is being sold to the strategic buyer under the deal approved in October 2026?

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Correct answer: B — 60.72%

PIB: 60.72% is being sold — 30.48% held by GoI and 30.24% held by LIC.

Q3 Advanced

What was the winning best-offer bid per share in the IDBI Bank strategic sale approved in October 2026?

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Correct answer: C — ₹81

PIB: the winning bid of ₹81 per share was above the benchmark price of ₹75.99, so it was approved.

Q4 Advanced

After the IDBI Bank transaction, what residual shareholding will the Government of India and LIC hold, respectively?

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Correct answer: D — 15% and 19%

PIB: residual shareholding of 15% with GoI and 19% with LIC.

Q5 Advanced

On which date did the RBI place IDBI Bank under its Prompt Corrective Action (PCA) framework?

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Correct answer: A — 5 May 2017

PIB background: RBI put IDBI Bank under PCA on 5 May 2017 and lifted the restrictions by letter dated 10 March 2021.