New Delhi, Oct. 14 -- The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings, founded by Indian-born Canadian billionaire Prem Watsa, for Rs.52,877 crore, making it one of the biggest foreign investments in the country's banking sector.

The transaction involves the sale of the government's 30.48% stake and Life Insurance Corporation of India's (LIC) 30.24% holding in IDBI Bank. Following the proposed transaction, the government will retain a 15% stake and LIC 19%, taking their combined holding to 34%.

Union Minister Ashwini Vaishnaw said the strategic partnership would facilitate fresh capital infusion into IDBI Bank and create growth opportunities for...