K T Rama Rao Questions IDBI Bank Sale to Fairfax Financial
K T Rama Rao challenged the Indian government's sale of a controlling stake in IDBI Bank to Canada's Fairfax Financial over valuation concerns.
Working president of the Bharat Rashtra Samithi K T Rama Rao questioned the Union Government of India regarding the proposed sale of a 60.72 per cent controlling stake in IDBI Bank to Canada's Fairfax Financial Holdings for Rs 52,878 crore.
K T Rama Rao alleged that prime real estate assets in Hyderabad may have been undervalued during the process. He specifically questioned why valuation methodologies were changed after initial bids fell below the reserve price and demanded transparency regarding the government's failure to address objections from bank employees.
The disinvestment follows a period of financial recovery for IDBI Bank. The bank's gross non-performing assets dropped from 31.78 per cent in 2018 to 2.32 per cent in March 2026, and it reported a net profit of Rs 9,513 crore in FY26. Once the transaction is complete, the Life Insurance Corporation of India's shareholding will decrease to 19 per cent.
