India’s four-year attempt to hand over IDBI Bank to a private owner has moved into another decisive stretch. The Finance Ministry and the Department of Investment and Public Asset Management are working through revised financial bids from Canada’s Fairfax Financial Holdings and Dubai’s Emirates NBD for a combined 60.72% stake in the Mumbai-based lender, government sources said on Friday, describing the review as steady.
No fresh completion date was offered, but a reported price point has been hanging over the process for weeks, and it’s the real story behind today’s update.
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What Government Sources Confirmed Today
Sources said the strategic disinvestment “is moving at a steady pace” and that financial bids from both bidders are under evaluation, without disclosing further detail.
Both Fairfax Financial Holdings and Emirates NBD remain part of the revised-bid process, with the government currently evaluating their offers. This is the second round of financial bids from the pair, after their first submission earlier this year came in below the government’s reserve price.
How Much of IDBI Bank Is Actually Up for Sale
The Centre and Life Insurance Corporation together hold 94.71% of IDBI Bank. They are jointly selling 60.72% of that holding along with management control:
| Shareholder | Current Holding | Stake Being Sold |
|---|---|---|
| Government of India | 45.48% | 30.48% |
| LIC | 49.24% | 30.24% |
| Combined | 94.71% | 60.72% |
The Two Bidders in the Revised-Bid Process
Kotak Mahindra Bank had also expressed early interest in IDBI Bank, but its interest never converted into a financial bid for this round, leaving Fairfax and Emirates NBD as the two names in contention.
| Fairfax Financial Holdings | Emirates NBD | |
|---|---|---|
| Base | Toronto, Canada (led by Prem Watsa) | Dubai, UAE |
| Existing India banking exposure | ~40% stake in CSB Bank | Majority stake in RBL Bank |
| MHA security clearance & RBI ‘Fit and Proper’ | Cleared | Cleared |
| Bid status (per government, Sept 25) | Revised bid under evaluation | Revised bid under evaluation |
Fairfax’s offer has been the more visible one in prior reporting — it was said in July to have raised its bid to ₹81 a share from ₹75 previously, though Fairfax has not officially commented on the figure.
The ₹53,000 Crore Number: Reported, Not Confirmed
Today’s government statement doesn’t disclose bid amounts. The ₹53,000 crore figure attached to this story comes from separate, earlier reporting: multiple outlets said in July that Fairfax’s revised ₹81-a-share offer would value the 60.72% stake at roughly that level.
IDBI Bank itself has repeatedly said it has neither confirmed nor denied the sale process, adding it has had no role in the negotiations and has received no communication from the government about any transaction. Treat the number as a market reference point, not an official disclosure.
That number appears to be the actual sticking point. On September 8, IDBI Bank shares fell 10.6% to close at ₹81.12 after reports said the government and Fairfax had not reached agreement on valuation, with the ₹81 offer described as a discount to levels the stock had traded at just weeks earlier. A Finance Ministry meeting the day before had reviewed the offer.
The stock has stayed in a narrow band since, ₹83.55 on September 11, ₹81.93 by September 18, with no public signal that the gap has closed. Today’s update, which frames the process as “bilateral valuation discussions”, suggests it may still be open.
Traders tracking how FIIs and DIIs are positioning in PSU bank counters through this can check NiftyTrader’s FII-DII Tracker (niftytrader.in/fii-dii-data) for daily flow data.
A Sale That’s Stalled on Price Before
| Date | Development |
|---|---|
| Oct 2022 | Expression of Interest floated |
| 2023 | RBI ‘Fit and Proper’ and MHA clearance process begins for shortlisted suitors |
| Feb 6, 2026 | First round of financial bids submitted |
| Mar 2026 | Bids came in below reserve price; process paused |
| May 2026 | Reports say government weighing a reserve-price cut of up to 20% |
| Jul 2026 | Fairfax reportedly raises offer to ₹81/share; Emirates NBD submits revised bid (Jul 13) |
| Aug 25, 2026 | Reports say Centre could clear Fairfax’s bid “within a week”; Bank Officers’ Association asks IRDAI to review LIC’s exit valuation |
| Sept 7–8, 2026 | Finance Ministry reviews ₹81/share offer; no agreement reached; shares crash 10.6% to ₹81.12 |
| Sept 25, 2026 | Sources say both bidders’ revised bids remain under evaluation, “moving at a steady pace” |
The Regulatory Runway Still Ahead
A valuation agreement is only one step. What remains includes Cabinet approval of the final bid and terms, a formal share purchase agreement, clearances from the RBI, SEBI and the Competition Commission of India, and, once a buyer is confirmed, a mandatory open offer to IDBI Bank’s minority shareholders under SEBI’s takeover rules.
Fairfax’s existing 40% stake in CSB Bank adds a layer: Economic Times has reported that India may give Fairfax up to two years to consolidate its Indian banking holdings to comply with RBI’s single-licence norms if it is confirmed as the buyer.
Not Everyone Is Convinced
The valuation has drawn institutional pushback of its own. In August, the All-India Bank Officers’ Association reportedly asked insurance regulator IRDAI to examine LIC’s exit price of about ₹81–82 a share, a request that could add its own delay to approvals. Separately, an IDBI Bank employee’s forum opposed the stake sale plan in July, and EAS Sarma, a former secretary to the Government of India, has compared the transaction’s risks to the aborted Central Electronics Ltd case.
The Bigger Picture: India’s Bank Privatisation Bet
The push to close IDBI Bank sits within the Centre’s FY27 target of ₹80,000 crore from combined disinvestment and asset-monetisation receipts. India is also reportedly weighing a rise in the FDI limit for state-run banks to 49% from 20%, specifically to draw more interest of this kind.
A deal near the reported ₹81-a-share level would sit alongside Emirates NBD’s own roughly $3 billion RBL Bank acquisition as one of the largest recent foreign bets on Indian banking, if it clears the valuation stage it’s currently stuck on.
Bottom Line
Nothing here is finalised. Today’s update confirms only that revised bids from Fairfax and Emirates NBD are being evaluated, not that either has won, and not that the reported ₹81-a-share, ₹53,000-crore figure has been accepted by the government.
Valuation, not process, has been the actual holdup since early September: a Finance Ministry review, a 10.6% stock crash, and roughly three weeks of flat trading around ₹81–84 all point to a gap that hasn’t visibly closed.
A Cabinet decision, a share purchase agreement and a mandatory open offer to minority shareholders still lie ahead, each a point where the number could move again.
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Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. NiftyTrader.in is a SEBI-registered research entity. Investors are advised to consult a registered investment advisor and assess their own risk appetite before making investment decisions. Figures are drawn from government sources, exchange-linked share price data and cited media reports as of the time of publication and are subject to change.
