The sale of IDBI Bank comes at a time when the economy is facing challenges on account of a persistent crude oil shock impacting forex balances that are being addressed by RBI. This has also strained government balances with various conjectures being made on the fiscal slippages due to higher subsidy outflows. Needless to say, a flow of ₹26,000 cr comes as a bonanza for the government.
What makes this sale special is that while discussions started from 2022 onwards, the deal has been completed in 2026 during which time the bank has become even stronger than before, thus making it a good pick for Fairfax in terms of valuation.
