The strategic disinvestment of IDBI Bank is progressing at a “steady pace”, with the government currently evaluating financial bids submitted by the interested investors, government sources said on Friday.
The government is looking to sell a 60.72% stake in IDBI Bank, with Fairfax Financial Holdings, backed by billionaire investor Prem Watsa, and Dubai-based Emirates NBD having submitted revised financial bids for the lender. The two bidders submitted their revised offers on July 13, 2026, after the government restarted the strategic sale process earlier this financial year.
Both bidders have an existing presence in India's banking sector. Emirates NBD acquired a majority stake in RBL Bank earlier this year, while Fairfax Financial Holdings owns a 40% stake in private-sector lender CSB Bank. The bidders have already received security clearance from the Ministry of Home Affairs (MHA) and have also received the “Fit and Proper” assessment from the Reserve Bank of India.
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This is the second time that Fairfax Financial Holdings and Emirates NBD have submitted financial bids for IDBI Bank. The government had first invited an Expression of Interest (EoI) for the strategic sale in October 2022. Following regulatory clearances and the due diligence process, financial bids were submitted on February 6, 2026.
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However, the bids submitted by Fairfax Financial Holdings and Emirates NBD were below the reserve price determined by the Inter-ministerial Group on disinvestment, headed by secretaries in the finance ministry. The government subsequently put the strategic sale process on hold.
The disinvestment process was revived this financial year, with the government inviting revised financial bids from the two interested bidders in early July. The revised bids were submitted on July 13. The Centre and state-owned Life Insurance Corporation of India (LIC) together hold a 94.71% stake in IDBI Bank.
The government holds a 45.48% stake in the lender, while LIC owns 49.24%. As part of the strategic sale, the government and LIC plan to divest a combined 60.72% stake in IDBI Bank.
The proposed stake sale comprises the Centre's 30.48% holding and LIC's 30.24% stake in the bank.
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