In a major development in the banking sector, Cabinet approves IDBI Bank sale to Fairfax at a price of Rs. 52,878 crore. IDBI Bank has been sold to a Canada based private company.
The Government of India and LIC have sold their entire stake of 60.72 percent in IDBI Bank to Fairfax. IDBI Bank is now a foreign-owned bank.
Reports confirm that, IDBI Bank sale to Fairfax is expected to be complete by March 2027. Fairfax is all set to acquire a 60.72 percent stake in IDBI Bank. It is worth mentioning here that the deal represents India’s largest ever financial sector Foreign Direct Investment (FDI).
UFBU protests IDBI Bank sale to Fairfax
However, UFBU has protested against the privatization and foreignization of IDBI and has asked its members to wear black badges.
In a letter addressed to its members the United Forum of Bank Unions said, ” The Government, as part of their privatisation agenda, has been contemplating to sell its share-holdings in IDBI Bank. Government of India and LIC put together control 94% of the shares of IDBI Bank.”
It further read, “Due to huge bad loans, the Bank was facing problems earlier. Now the Bank is doing well and is earning impressive profit year after year. Earlier when IDBI was merged with IDBI Bank, Government assured the Parliament that at anytime, the Government shall hold not less than 51% of the shares. But the Government has been planning to sell IDBI Bank…”
UFBU said, “It is not only privatisation, rather it is foreignization. The Cabinet has decided to sell 60% of the share of the Bank to Fair Fax Company, an investor from Canada…”
It added, “We call upon all our unions and members to observe BLACK BADGE WEARING on 16th October, 2026 to express our protest.”
