Cabinet approves strategic restructuring and sale of IDBI Bank
Quick dive
- The Cabinet approved Fairfax Financial Holdings' bid of ₹52,878 crore for a strategic stake in IDBI Bank.
- After the transaction, the government's stake is to fall to 15% and LIC's to 19%.
- IDBI Bank was placed under Prompt Corrective Action in 2017; its gross NPA ratio fell from 31.8% in September 2018 to 2.3% in March 2026.
- Its capital adequacy ratio rose from 6.22% in 2018 to 26.65%, and it reported ₹9,513 crore net profit in FY26.
- exam_relevance: tests PCA, bank capital adequacy, non-performing assets, strategic disinvestment and the difference between ownership change and banking regulation.
Full explanation
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