Government Approves Proposed 60.72% IDBI Bank Sale

The government has approved a proposed sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings, prompting Rahul Gandhi to oppose the transfer and Finance Minister Nirmala Sitharaman to defend it. The transaction, approved on October 14, remains subject to regulatory clearance, including approval from the Reserve Bank of India. The proposed sale covers the Centre’s 30.48% holding and the 30.24% stake held by Life Insurance Corporation of India (LIC). The deal has been valued at about Rs 52,878 crore, or roughly Rs 53,000 crore. If completed, the government would retain 15% of IDBI Bank and LIC 19%, leaving them with a combined 34% holding. Completion is expected by the end of the current financial year, conditional on clearance. In a letter to IDBI Bank employees dated October 29, Gandhi questioned the sale of a bank he described as profitable and backed employees opposing it. He said the bank had earned more than Rs 9,000 crore in the previous financial year, crediting staff for its turnaround, and raised concerns about employee service conditions, depositor protections and reservation provisions for Scheduled Castes, Scheduled Tribes and Other Backward Classes if...