Fairfax emerges as frontrunner to acquire government-LIC stake in IDBI

The Economic Times and News18 report that Fairfax is leaning toward a full cash offer, while Kotak Mahindra Bank remains a close contender. The government and LIC are jointly offloading their majority holding, with financial bids expected by December-end. IDBI Bank, once burdened by high non-performing assets, has undergone significant restructuring and returned to profitability, making it an attractive acquisition target. Finance Ministry officials expect proceeds of over ₹32,000 crore to support fiscal math for FY26.  

Notable updates  
• Fairfax Financial emerges as frontrunner for IDBI Bank stake sale  
• Government and LIC jointly selling 60.72% stake worth $7.1 billion  
• Kotak Mahindra Bank also in contention; bids due by December-end  
• IDBI Bank has cleaned up balance sheet and returned to profitability  
• Proceeds expected to contribute over ₹32,000 crore to FY26 budget  

Major takeaway  
Fairfax’s lead in the IDBI stake sale underscores global investor confidence in India’s banking sector reforms, while marking a pivotal step in the government’s privatization agenda.  

Sources: Economic Times News18 Moneycontrol BusinessWorld Hindu BusinessLine