IDBI Bank has been sold to Fairfax Holdings, a Canadian company headed by Prem Watsa. The man was awarded the Padma Shri in 2020. IDBI Bank was trading around Rs.90 in Indian stock market, but was sold to Fairfax at Rs.81 per share, a whopping 10% discount. Watsa now owns a controlling stake of 60.72% of IDBI Bank, while the government entities own 39%. IDBI Bank’s stake sale amount is around Rs.53,000 crores, while its valuation is Rs.87,000 crores. But here’s what is concerning. IDBI is a profitable bank. Its net profit is Rs.9500 crores. It has reduced its NPAs from 32% in 2018 to 2.3% in 2026. This was a huge turnaround. Why would such a bank be sold to a foreign investor like Fairfax at a discounted value? Fairfax already controls CSB Bank in India. Banking regulations do not permit one promoter to control two Indian banks. Yet Fairfax has been given two years to merge CSB with IDBI or exit. Why? No promoter is allowed to hold more than 26% stake in a bank, and yet Fairfax has been offered 60.72% controlling stake with an extension of 15 years to pare it down to 40% by 10th year and 26% by 15th year. Technically, Fairfax can control the bank for 9 years, and sell 34.72% at a huge premium in the 10th and 15th year. Why? In CSB, Fairfax has made a 129% return on their investment in 7 years. So it is safe to assume that IDBI Bank would double its market cap in 10 years, in addition to dividends and profits it makes. Diwali has arrived early for Fairfax in 2026. What happened to Make in India? What happened to Atmanirbhar Bharat? Such uncomfortable questions should not be asked. Bhai ne bola karne ka, toh karne ka. #IDBIBank #happydiwali #Fairfax #AtmanirbharBharat #makeinindia