New Delhi, Oct. 14 -- The Indian government has approved the "strategic restructuring" of IDBI Bank, with the Centre and state-run Life Insurance Corp. of India (LIC) set to sell a combined 60.72% stake to a Fairfax Financial Holdings-backed entity for Rs.52,878 crore, the finance ministry said.The deal would be the largest foreign direct investment (FDI) in India's financial sector to date, Finance minister Nirmala Sitharaman said after the Cabinet Committee on Economic Affairs (CCEA) meeting on Wednesday. The transaction is expected to be completed in the current fiscal year, capping efforts that began with the Cabinet's approval for the divestment in 2021.

For the government, the sale could mark a significant step towards completing a...