IDBI Bank Limited is undergoing strategic restructuring under which the central government and Life Insurance Corporation of India will divest a combined 60.72% stake to Fairfax-backed Canada Inc for Rs 52,878 crore, with the share purchase agreement to be executed before calendar year 2026.

IDBI Bank Limited is to be strategically sold to a Fairfax Group arm after the Cabinet Committee on Economic Affairs approved the transaction, with the government and Life Insurance Corporation of India retaining a combined 34% stake in the restructured lender.

IDBI Bank Limited shares surged up to 13% on heavy volumes as the government is evaluating financial bids for a strategic stake sale. Billionaire Prem Watsa-backed Fairfax Financial Holdings and Emirates NBD submitted revised bids in July to buy 60.72% in IDBI Bank Limited, comprising 30.48% from the government and 30.24% from Life Insurance Corporation of India. IDBI Bank Limited also reported Q2FY27 total business growth of 18% year-on-year to Rs 6,27,149 crore and has scheduled a board meeting on October 17 to approve results for the quarter and half-year ended September 30, 2026.

IDBI Bank Limited recorded the steepest decline in mutual fund shareholdings among small-cap stocks in September 2026, with mutual funds trimming holdings by 44.7% from August 2026.

IDBI Bank Limited had the highest turnaround time among private banks at 44 days for processing loans under the PM Surya Ghar Muft Bijli Yojana, well above the finance ministry's sought timeline of less than 10 days.