Business news · Policy & Regulation · 15 Oct 2026
The Cabinet Committee on Economic Affairs approved the sale of a 60.72% stake in IDBI Bank to a Fairfax Financial Holdings-backed buyer for Rs 52,878 crore. The government sells 30.48% and LIC 30.24%; afterwards the government keeps 15% and LIC 19%. The buyer still has to satisfy the RBI's fit-and-proper conditions. IDBI Bank shares fell as much as 7.45% to Rs 83.70 on 15 October.
It is the first sale of control of a state-run bank in this disinvestment round and, by the government's account, India's largest foreign direct investment in financial services. Proceeds go to the government and to LIC. A privately controlled IDBI Bank becomes a new competitor for other mid-sized private and public sector lenders. No completion date has been given.
Reported by Free Press Journal — “IDBI Bank Shares Plunge 7.45%, Cabinet Clears ₹52,878 Crore Fairfax Stake Deal” ↗ on 15 Oct 2026.
NSE stocks, from the last close on or before 15 Oct 2026 to the close on 16 Oct 2026.
| Sector | Stocks | Median move | Up | vs all stocks |
|---|---|---|---|---|
| Financial Services | 124 | -0.3% | 52 of 124 | -0.5 pts |
| All tracked stocks | 804 | +0.2% | 448 of 804 | — |
| Company | Then | Now | Move |
|---|---|---|---|
| IDBI Bank Ltd. IDBI | ₹83.45 | ₹84.12 | +0.8% |
| Life Insurance Corporation of India LICI | ₹394 | ₹397.75 | +1.0% |
The two largest private banks show how lenders are earning as rates turn up: bond-trading gains shrink when yields rise, so core lending income carries more of the result. Net interest margins and loan-loss provisions…
If YES Bank has to restore or compensate the bondholders, the liability lands on a bank that has not provided for it, which bears on its capital ratios and profit. The ruling also bears on how AT1 bonds are priced…
A higher repo rate feeds through to bank lending and deposit rates. Lenders with floating-rate loan books reprice faster than their deposits at first, while NBFCs and housing-finance companies that borrow from markets…
US inflation is running more than one percentage point above the Fed's 2% goal, and the minutes keep a further increase on the table without naming a meeting. Market pricing, as reported, points to no change in October…