India approves sale of majority stake in IDBI Bank to Fairfax

Dragon Media Newsroom

India’s Cabinet has approved the proposed sale of a 60.72% stake in IDBI Bank to a subsidiary of Canada’s Fairfax Financial Holdings. The stake is held jointly by the Indian government and the state-run Life Insurance Corporation of India.

India’s Press Information Bureau put the proposed transaction at 528.78 billion rupees, or about $5.6 billion. The sale comprises the government’s 30.48% holding and LIC’s 30.24% stake.

The Cabinet’s approval does not mean the transaction has been completed. The share transfer and change in management control remain subject to the required regulatory and other procedures. If completed, it would rank among the largest foreign-controlled banking transactions in India.