New Delhi, Oct. 14 -- Canada-based Fairfax Financial Holdings is set to acquire a controlling stake in financially troubled IDBI Bank for Rs.52,878 crore after the Union Cabinet approved the deal on Wednesday, October 14.

The strategic sale of IDBI Bank has been in the works since 2022, with the government and the Life Insurance Corporation of India (LIC) together selling a 60.72% stake in the lender and transfer management control.

With this, the government's stake in the bank will fall from 45.5% to 15%, while LIC's holding with decline from 49.2% to 19%. Both will withdraw their nominees from the Board and become public shareholders, as per the official release.

The transaction had been delayed due to regulatory approvals and comple...