IDBI Bank Stake Sale Set to Become India’s Biggest Foreign Investment in a Bank

: Canadian financial services company Fairfax Financial Holdings will acquire a 60.72% stake in IDBI Bank for ₹52,878 crore, marking the largest-ever foreign investment in an Indian bank. The Union Cabinet’s Committee on Economic Affairs approved the proposed transaction on Wednesday.
 

Union Information and Broadcasting Minister Ashwini Vaishnaw announced the Cabinet decision, stating that the government and the Life Insurance Corporation of India (LIC) would retain a combined 34% stake in the new ownership structure.
 

Under the proposed deal, Fairfax, led by Canadian businessman Prem Watsa, will purchase the government’s 30.48% stake for approximately ₹26,620 crore. It will also acquire LIC’s 30.24% holding for around ₹26,440 crore.
 

According to the government’s statement, Fairfax will pay ₹81 per share for the stakes. Following the announcement, IDBI Bank shares rose 9.07% on the BSE on Wednesday to close at ₹90.44.
 

Finance Minister Calls Deal a Significant Milestone
 

Union Finance Minister Nirmala Sitharaman described the transaction as a major achievement, noting that the government had helped the bank recover from financial difficulties.
 

She said the move would strengthen India’s banking system and help bring banking services in line with international standards.
 

Before the transaction is finalised, Fairfax will submit an action plan to the Reserve Bank of India (RBI), the government said.
 

Cabinet Approves Bonus for Railway Employees
 

In a separate decision, the Union Cabinet approved a productivity-linked bonus equivalent to 78 days’ wages for 1,140,770 railway employees.
 

The bonus will cost the government ₹2,009.61 crore. According to the government, each eligible railway employee will receive a maximum payment of ₹17,951 for the 78-day period.
 

The government said Indian Railways delivered a strong performance during the 2025–26 financial year.
 

The Cabinet also approved the continuation of the National Social Assistance Programme for another five years, allocating ₹53,428 crore for the scheme.