Cabinet clears way for Watsa's Fairfax's Rs 52,878 crore deal for 60.72% stake in IDBI Bank
Executive Brief • Key Highlights
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- ✓The Cabinet approved Fairfax Financial Holdings’ Rs 52,878 crore deal to acquire a 60.72% stake in IDBI Bank on Wednesday.
- ✓Finance Minister Nirmala Sitharaman said, "This process has been brought to its logical conclusion." This major sale helps the government meet its disinvestment target and strengthens the country's banking ecosystem.
Story at a Glance
- Category
- BUSINESS
- Reported By
- The Economic Times
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Synopsis
Fairfax Financial Holdings will acquire a majority stake of 60.72% in IDBI Bank for ₹52,878 crore. This acquisition marks a significant moment in the government's divestment efforts, as it represents strategic restructuring. The deal aims to strengthen the banking ecosystem and support the government's disinvestment target for the fiscal year. IDBI Bank's financial position has improved significantly, with reduced non-performing assets.
New Delhi: Canadian billionaire Prem Watsa's Fairfax Financial Holdings will acquire a majority 60.72% stake in IDBI Bank for ₹52,878 crore ($5.5 billion), in a deal approved by the Cabinet Committee on Economic Affairs on Wednesday, bringing to an end the government's four-year divestment effort. Although state-backed, IDBI Bank is classified by the Reserve Bank of India as a private sector bank.
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The Economic Times
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