Cabinet Approves IDBI Bank Stake Sale To Fairfax For Rs 52,878 Crore; FM Calls It Strategic Restruct

The Union Cabinet has approved the strategic stake sale of IDBI Bank to Canada Inc. whose parent company is Fairfax Financial Holdings for Rs 52,878 crore, taking forward the government's long-pending plan to transfer management control of the lender. Finance Minister Nirmala Sitharaman, however, described the transaction as a “strategic restructuring” rather than strategic disinvestment, while clarifying that the government and Life Insurance Corporation of India (LIC) will continue to hold stakes in the bank.