The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings, founded by Indian-born Canadian billionaire Prem Watsa, for ₹52,877 crore, making it one of the biggest foreign investments in the country’s banking sector.
The transaction involves the sale of the government’s 30.48% stake and Life Insurance Corporation of India’s (LIC) 30.24% holding in IDBI Bank. Following the proposed transaction, the government will retain a 15% stake and LIC 19%, taking their combined holding to 34%.
Union Minister Ashwini Vaishnaw said the strategic partnership would facilitate fresh capital infusion into IDBI Bank and create growth opportunities for micro, small, and medium enterprises (MSMEs), small industries, and new entrepreneurs.
Fairfax has been a major investor in India through Fairfax India Holdings Corporation, which had assets worth $3.8 billion as of June 30, 2026. Its other investments include non-bank lender IIFL Capital and online brokerage firm 5paisa.
The proposed transaction comes at a time when the war in the Middle East has strained government finances and weaker foreign inflows have put pressure on the rupee.