Following are the timelines in the nine-year journey that culminated in the sale of the government’s holding in IDBI Bank to Fairfax for Rs 52,878 crore.
The RBI subsequently classifies the lender as a private-sector bank for regulatory purposes. May 2017: The Reserve Bank of India places IDBI Bank under the Prompt Corrective Action (PCA) framework after the lender breaches thresholds for capital adequacy, asset quality, return on assets and leverage. Its net non-performing assets exceeded 13 per cent in March 2017. January 2019: Life Insurance Corporation of India acquires a 51 per cent controlling stake in IDBI Bank. April 2021: LIC approves a proposal to reduce its stake in IDBI Bank through equity dilution alongside the government’s planned strategic disinvestment. October 2022: The government invites expressions of interest for the sale of a 60.72 per cent stake in IDBI Bank, comprising a 30.48 per cent holding by the government and 30.24 per cent by LIC. October 2026: CCEA approves strategic restructuring of IDBI Bank, Fairfax to acquire 60.72 per cent controlling stake for Rs 52,878 crore. Government and LIC to together hold 34 per cent after the stake sale.
