Fairfax Financial Agrees to $5.5 Billion IDBI Bank Acquisition

The Government of India and the Life Insurance Corporation of India (LIC) have agreed to sell a 60.72% stake in IDBI Bank to Canada's Fairfax Financial Holdings in a deal valued at ₹53,000 crore ($5.5 billion). This acquisition represents the largest foreign investment in an Indian bank and the government's largest privatization since the 2022 sale of Air India.

The transaction follows a restart of the sale process this month after bids in March 2026 failed to meet the government's minimum reserve price. Fairfax Financial emerged as the frontrunner after increasing its offer to ₹81 per share, up from a previous bid of ₹75. While Dubai-based Emirates NBD was initially a primary contender, reports indicated the firm stopped actively pursuing the deal following its acquisition of RBL Bank.

As part of the agreement, LIC will sell a 30.24% stake, potentially receiving approximately ₹26,440 crore. The deal now awaits final assessment by the Reserve Bank of India to ensure fit and proper standards, along with approval from the Competition Commission of India. Fairfax Financial is also required to make an open offer to public shareholders to finalize the controlling interest.