On 14 October 2026, the Union Cabinet approved selling a 60.72 % stake in IDBI Bank to Fairfax Financial Holdings for INR52,878.08 crore.
The deal was accepted despite Fairfax’s INR81-per-share offer being below the original INR94.42 reserve price, prompting criticism of undervaluation.
Fairfax will pay INR81 per share, above the INR75.99 fair-value benchmark set by two valuers.
Combined government and LIC ownership will drop from about 95 % to roughly 34 %.
Center
Bid Beats Benchmark
The Union Cabinet approved selling a 60.72% stake in IDBI Bank to Fairfax Financial Holdings for INR52,878.08 crore on 14 October 2026.
The government said the sale used a double-blind valuation by two independent advisers, and the INR81-per-share bid exceeded the benchmark fair value.
Finance Minister Nirmala Sitharaman said IDBI was revived after being handed over in poor shape.
Department of Investment reported second-round bidding followed Core Group of Secretaries on Disinvestment guidelines.
Right
Reservation Quotas Threatened
The Union Cabinet approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings for INR52,878.08 crore on 14 October 2026.
The government framed the privatization as correcting Congress-era mismanagement that left the bank burdened with bad loans.
Rahul Gandhi warned the sale could erase SC, ST and OBC reservation quotas.
Bank employee unions protested, saying disinvestment threatens jobs and the public-sector character of IDBI.
Blindspot
BusinessWorld minutes show the government accepted Fairfax’s INR81-per-share offer even though the original reserve price had been set at INR94.42 per share.
Within this story's sources, this angle appears mainly in Left-leaning coverage and receives less attention in Center-leaning and Right-leaning coverage.
History
1991 Prime Minister P.V. Narasimha Rao and Finance Minister Manmohan Singh introduced the New Industrial Policy, permitting up to 49 % divestment in public-sector units. The Vajpayee-led NDA (1999-2004) later branded the move “privatization,” aiming to cut non-strategic PSU stakes to roughly 26 %. In October 2026 the cabinet approved Fairfax’s INR52,878 crore purchase of a 60.72 % IDBI stake, echoing that reform line and drawing criticism from Rahul Gandhi.
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Deal Seen Undervalued
On 14 October 2026, the Union Cabinet approved selling a 60.72 % stake in IDBI Bank to Fairfax Financial Holdings for INR52,878.08 crore.
The deal was accepted despite Fairfax’s INR81-per-share offer being below the original INR94.42 reserve price, prompting criticism of undervaluation.
Fairfax will pay INR81 per share, above the INR75.99 fair-value benchmark set by two valuers.
Combined government and LIC ownership will drop from about 95 % to roughly 34 %.
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Cabinet Approves Fairfax Buy of 60.72% IDBI Stake | Drooid
