The government’s decision to sell a 60.72% stake in IDBI Bank to Fairfax Financial Holdings for ₹52,878 crore has triggered political and procedural controversy.
The deal, approved on October 14, 2026, involves the sale of 30.48% government ownership and 30.24% held by LIC. Following the transaction, the government will retain 15%, while LIC will hold 19%.
Questions have emerged over the sale price after the initial reserve price of ₹94.42 per share was not met by bidders. Fairfax later submitted an offer of ₹81 per share, which was accepted against a revised valuation benchmark of ₹75.99.
Concerns have also been raised over the valuation methodology, selection of comparable banks and the reported use of provisions from the Railway Stores Code.
The Finance Ministry has defended the transaction, stating that the process followed established procedures and involved independent valuation exercises.
Meanwhile, Rahul Gandhi has opposed the privatisation, questioning the need to sell a profitable bank. He has also raised concerns about employee security, pensions and reservation policies.
The controversy has brought renewed attention to the transparency of the deal and the future of IDBI Bank’s employees.