Canada-based Fairfax Financial Holdings, led by billionaire Prem Watsa, is poised to acquire a majority stake in IDBI Bank for approximately $5.5 billion (₹53,000 crore), marking the largest-ever foreign investment in an Indian lender. The landmark transaction followed intensive discussions at the Finance Ministry, where Fairfax reportedly sweetened its offer to ₹81 per share—an 8% increase from its previous bid of ₹75—gaining crucial momentum after the privatization process was briefly put on hold earlier in 2026 due to valuation concerns. Under the proposed agreement, Fairfax will acquire a combined 60.72% stake jointly held by the Government of India and the Life Insurance Corporation of India (LIC). Individually, the Centre is set to divest 30.48% of its holdings, raising around ₹26,620 crore, while state-run insurer LIC will offload 30.24% to net nearly ₹26,440 crore.
This high-profile disinvestment represents a major victory for New Delhi’s asset monetization targets. However, several critical regulatory steps remain before the deal is finalized. Fairfax must obtain official clearance from the Reserve Bank of India (RBI) under its stringent “fit and proper” criteria, alongside approvals from the Competition Commission of India (CCI). Additionally, because Fairfax currently owns a 40% stake in Kerala-based CSB Bank, the promoter may eventually be required to merge the two entities under prevailing banking guidelines. In line with SEBI regulations, the acquisition will also trigger a mandatory open offer to IDBI Bank’s public shareholders. While IDBI Bank officially maintained that it has not yet received formal government communication regarding the finalized transaction, the deal signals massive global confidence in India’s robust financial sector.
