IDBI Bank Ltd. is a scheduled commercial bank regulated by the Reserve Bank of India (RBI). Due to its poor financial health, the Bank required repeated infusion of capital, initially provided by the Government of India and later by the LIC. On 5th May, 2017, the Reserve Bank of India (RBI) put the IDBI Bank under the Prompt Corrective Action Framework and imposed several restrictions in view of its non-performing assets and losses incurred by the Bank. After considering the improvement in the Bank’s financial health, the RBI later, vide its letter dated 10th March, 2021, lifted the restrictions imposed on the IDBI Bank subject to certain conditions and continuous monitoring.

It was against this backdrop that the Cabinet Committee on Economic Affairs (CCEA) approved strategic restructuring of the IDBI Bank Ltd., and in compliance thereof, it was decided that an aggregate 60.72% of the equity stake in the IDBI Bank Ltd be sold to a Strategic Buyer, of which, the GoI share would be 30.48% and the LIC share would be 30.24%, leaving a residual shareholding of 15% with the GoI and 19% with the LIC.

The decision of the CCEA was implemented through a two-stage, competitive bidding process supported by a multi-layered, collective decision-making mechanism consisting of the Inter-Ministerial Group (IMG), the Core Group of Secretaries on Disinvestment (CGD) and the Alternative Mechanism (AM) consisting of an empowered Group of Cabinet Ministers.

The Preliminary Information Memorandum (PIM) inviting Expression of Interest (EoI) from all interested parties was issued on 07.10.2022. Only the parties found ‘Fit and Proper’ by the RBI and granted security clearance by the MHA could participate in the bidding stage, for which a Request for Proposal was issued for inviting technical and financial bids from the Qualified Interested Parties (QIPs). Of the five parties who initially submitted their expression of interest, four parties qualified as per the eligibility criteria and disqualification conditions prescribed therein, of which, two finally submitted their techno-financial bids and became Qualified Bidders (QBs) for this Transaction.

After comprehensive evaluation by the CGD and after considering the recommendations of the Alternative Mechanism, the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 14/10/2026 approved M/s 10955230 Canada Inc. (parent entity M/s Fairfax Financial Holdings Ltd.) as the Strategic Buyer for this Transaction for a purchase consideration of Rs.52,878.0806181 Crores (in words Rupees Fifty-Two Thousand Eight Hundred Seventy-Eight Crore Eight Lakh Six Thousand and One Hundred Eighty-One only) for the acquisition of 60.72% stake in the IDBI Bank Ltd, comprising 30.48% equity shareholding held by the Gol and 30.24% equity shareholding held by the LIC.