Govt to sell 60%+ of IDBI Bank to Fairfax, shares plunge 6.5%

IDBI Bank shares slumped 6.57% on Thursday after the government announced plans to dispose of more than 60.7% of its holding to Canada‑based Fairfax Financial Holdings. The stock opened at ₹89.86 on the NSE, down from a previous close of ₹90.39 recorded on Wednesday. The move marks a major privatisation step for the lender, which was set up on July 1 1964 under the name Industrial Development Bank of India to fund the country’s industrial growth. The government’s decision to transfer a controlling stake aims to bring fresh capital and global expertise to the bank. Fairfax, a diversified financial group, will become the principal shareholder once the transaction is completed. In parallel, Life Insurance Corporation (LIC) shares rose about 1% on the same day, touching an intraday high of ₹401.90 on the NSE. Market watchers noted the contrasting moves, with IDBI’s steep drop reflecting investor concerns over the scale of the sale, while LIC’s modest gain suggested continued confidence in the insurer’s performance. Analysts caution that the final terms of the deal, including price and timeline, remain pending, and the market will react to further details as they emerge. ## Context The sale follows a broader government push to reduce its footprint in public‑sector banks and attract private investment, a trend seen in recent years across several financial institutions.