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The Union Cabinet has approved the proposed sale of a 60.72% stake in IDBI Bank to a Fairfax subsidiary and a 78-day performance-linked bonus for approximately 11.4 lakh railway employees worth around Rs 2,009 crore. (Img: X)
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved two major decisions, including the proposed sale of a 60.72 percent stake in IDBI Bank to Fairfax for around Rs 52,878 crore and a 78-day performance-linked bonus for approximately 11.4 lakh railway employees ahead of Diwali.
The decisions cover two significant areas: the restructuring of IDBI Bank’s ownership and a festive financial benefit for railway employees. While the bank transaction will move forward subject to regulatory approvals and other formalities, the bonus is expected to benefit employees across the railway network.
The Cabinet approved the proposed sale of a 60.72% stake in IDBI Bank to 10955230 Canada Inc., a subsidiary of Fairfax Financial Holdings, for approximately Rs 52,877.07 crore.
The stake comprises 30.48% held by the Government of India and 30.24% held by the Life Insurance Corporation of India (LIC). Fairfax reportedly won the bid at Rs 81 per share.
The transaction is expected to transfer management control to the strategic buyer once completed, making it a major milestone in the government’s long-pending plan to restructure its ownership of the lender.
Finance Minister Nirmala Sitharaman has described the transaction as “strategic restructuring” and clarified that the government and LIC will continue to hold residual stakes in the bank. The Reserve Bank of India’s fit-and-proper assessment of Fairfax remains an important step before the proposed transfer can be finalised.
In another major decision, the Union Cabinet approved a 78-day performance-linked bonus for approximately 11,40,770 railway employees. The total bonus amount is estimated at around Rs 2,009 crore.
Union Minister Ashwini Vaishnaw described the bonus as a Diwali gift for railway employees who continue to work across the network, including on railway tracks, inside locomotives and in workshops.
He noted that while many people celebrate festivals with their families, railway employees continue working to keep services running.
The bonus recognises the contribution of railway staff and comes ahead of the festive season, when passenger movement and demand for rail services typically rise.
The IDBI Bank transaction is a significant step in the government’s financial-sector restructuring plans, although completion remains subject to the required regulatory processes. The railway bonus, meanwhile, provides a performance-linked festive payment to more than 11 lakh employees, with a total outlay of around Rs 2,009 crore.
Together, the Cabinet decisions bring banking-sector ownership and employee welfare into focus ahead of Diwali. Further details on the implementation timeline for the IDBI Bank transaction and the disbursement schedule for the railway bonus will be important developments to watch.
