New Delhi:
Following are the timelines in the nine-year journey that culminated in the sale of the government’s holding in IDBI Bank to Fairfax for Rs 52,878 crore.
May 2017: The Reserve Bank of India places IDBI Bank under the Prompt Corrective Action (PCA) framework after the lender breaches thresholds for capital adequacy, asset quality, return on assets and leverage. Its net non-performing assets exceeded 13 per cent in March 2017.
January 2019: Life Insurance Corporation of India acquires a 51 per cent controlling stake in IDBI Bank. The RBI subsequently classifies the lender as a private-sector bank for regulatory purposes.
March 2021: The RBI removes IDBI Bank from the PCA framework after nearly four years, citing an improvement in its financial performance.
April 2021: LIC approves a proposal to reduce its stake in IDBI Bank through equity dilution alongside the government’s planned strategic disinvestment.
May 2021: The Cabinet Committee on Economic Affairs approves the strategic sale of the government’s and LIC’s stakes in IDBI Bank, including the transfer of management control.
October 2022: The government invites expressions of interest for the sale of a 60.72 per cent stake in IDBI Bank, comprising a 30.48 per cent holding by the government and 30.24 per cent by LIC.
January 2023: The government receives multiple expressions of interest from prospective bidders.
July 2024: Prospective bidders receive the required security clearances from the Home Ministry and undergo the RBI’s fit-and-proper assessment.
January 2026: The government invites financial bids for the proposed stake sale.
February 2026: The government receives financial bids from Fairfax Financial Holdings, led by Prem Watsa, and Dubai-based Emirates NBD.
March 2026: The government puts the sale process on hold after the financial bids fall below the reserve price.
April 2026: The government revives the disinvestment process and undertakes a technical evaluation of the way forward.
July 2026: The government invites revised financial bids and subsequently receives updated offers from Fairfax Financial Holdings and Emirates NBD.
October 2026: CCEA approves strategic restructuring of IDBI Bank, Fairfax to acquire 60.72 per cent controlling stake for Rs 52,878 crore. Government and LIC to together hold 34 per cent after the stake sale.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
