Business
Cabinet clears 60.72% IDBI stake sale for Rs 52,878 crore
The Hindu BusinessLine··2d ago
The Union Cabinet approved selling a 60.72 percent stake in IDBI Bank to Canada's Fairfax for Rs 52,878 crore. The package includes 30.48 percent from the government and 30.24 percent from LIC at Rs 81 per share. Finance Minister Nirmala Sitharaman said on X that UPA-era lending left heavy NPAs at IDBI. LIC bought a 51 percent controlling stake in
Prism
What It Means For You
- Fairfax control would change board oversight and lending strategy at a major public lender.
- Government receipts from the Rs 52,878 crore sale flow into the disinvestment programme.
- Remaining public holding levels will depend on how the 60.72 percent transfer closes.
What's Happening
- Sitharaman accused the UPA of phone banking and crony capitalism that pushed IDBI into RBI corrective action.
- Yadav likened the BJP to a shop running a season end sale before closing.
- The NDA cites capital infusion and transparency policies for the bank's recovery.
IDBI Privatisation Path
- Fairfax won the bid at Rs 81 per share.
- IDBI joined 21 strategic PSU stake sales since Modern Food Industries in 1999-2000.
- The transaction is the largest strategic disinvestment since Air India in 2022.
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