India’s Cabinet approved Fairfax Financial buying a 60.72 per cent stake in IDBI Bank for about Rs 53,000 crore.

It is the largest foreign investment ever made in an Indian bank, the article reports.

A Fairfax unit will buy the government’s 30.48 per cent stake and LIC’s 30.24 per cent holding.

Fairfax will pay Rs 81 per share, above the Rs 75.99 fair value set by independent valuers.

The stock jumped 9 per cent on Wednesday, then fell 7.54 per cent to Rs 83.62 on Thursday.

The sale takes the Centre past its disinvestment target for the year.

The deal still needs RBI and Competition Commission approvals before it can close.

Fairfax’s 40 per cent stake in CSB Bank may need restructuring under RBI ownership norms.

Read the full article for more details on the IDBI Bank sale.