New Delhi, Oct. 16 -- The on-now-off-again 'privatization' of IDBI Bank is finally on again, following the Union Cabinet's clearance of its sale.

Under the deal approved by the Cabinet Committee on Economic Affairs (CCEA) on Wednesday, Canadian billionaire Prem Watsa's Fairfax Financial Holdings will acquire a stake of nearly 61% in this development-turned-commercial bank for Rs.52,878 crore. A Fairfax subsidiary will pay Rs.81 per share, higher than the Rs.75.99 average of two independent valuations, the government said.

This brings down the curtains on an effort that has lasted for over a decade. The bank is not being 'privatized,' as it is already classified officially as a private bank.

Under the deal, Fairfax will pick up a stake ...