# KTR Questions IDBI Bank Valuation as Centre Approves 60.72% Fairfax Sale > KTR challenged the Centre over IDBI Bank's valuation as the Cabinet approved a 60.72% stake sale to Fairfax Financial Holdings for Rs 52,878 crore. - Published: 2026-10-31T05:30:21+00:00 - Section: Divestitures - Author: News Desk - URL: https://newsforagent.com/news/2026-10-31/idbi-bank-fairfax-stake-sale-valuation - Source: [Ani News](https://www.aninews.in/news/national/politics/whats-the-hurry-ktr-questions-idbi-bank-valuation-seeks-answers-from-centre-over-proposed-sale20261031103616/) ## Key takeaways - The Union Cabinet approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings for Rs 52,878 crore. - KTR asked why the rules and valuation methodology were changed after bids fell below the reserve price. - The government said the reserve price stayed unchanged while the discovered bid value rose Rs 3,917 crore in the revised round. BRS working president K T Rama Rao (KTR) questioned the Union Government over the proposed sale of a 60.72% stake in [IDBI Bank](https://akta.pro/company-profiles/0005fd3/idbi-bank) to Canada's [Fairfax Financial Holdings](https://akta.pro/company-profiles/0000z3v/fairfax-financial-holdings) for Rs 52,878 crore, raising concerns about the bank's valuation and the bidding process. [ANI News](https://www.aninews.in/news/national/politics/whats-the-hurry-ktr-questions-idbi-bank-valuation-seeks-answers-from-centre-over-proposed-sale20261031103616/) reported the questions on October 31. ## KTR's Questions on the IDBI Bank Sale In a social media post, KTR said public sector undertakings and public sector banks were national assets that needed to be safeguarded. He asked, "Why were the rules and valuation methodology changed when bids fell below the reserve price?" and closed with "What's the hurry?" KTR also drew attention to IDBI Bank's real estate holdings, particularly prime land parcels in Hyderabad, and questioned whether their worth had been properly assessed in the bank's valuation. He sought answers on why the concerns raised by bank employees were not being addressed. The government clarified that the reserve price for the privatisation remained unchanged, while the discovered bid price rose Rs 3,917 crore after a revised bidding process, [TimesNow](https://www.timesnownews.com/business-economy/companies/idbi-bank-privatisation-govt-clarifies-reserve-price-unchanged-discovered-bid-value-rises-rs-3-917-crore-article-156433381) reported. The ministry said the initial round failed to secure approval and that the valuation used market multiples and asset parameters. Rahul Gandhi criticised the Centre's proposed sale of a controlling stake in IDBI Bank, saying banks were being sold under Modi, [TradingView](https://www.tradingview.com/news/moodys:cdb51020e844a:0-during-modi-s-time-banks-are-being-sold-rahul-gandhi-extends-support-to-idbi-bank-employees-amid-stake-sale/) reported. Fairfax Financial Holdings completed the sale of its 80% equity interest in Eurolife's life insurance business to Eurobank S.A. for approximately €813 million in cash, the Financial Post reported on October 29. ## IDBI Bank's Financial Turnaround According to akta.pro [company records](https://akta.pro/company-data), IDBI Bank's total business crossed ₹6 lakh crore in FY2025-26, and total deposits stood at ₹3.47 lakh crore, up 23% year-on-year. The bank posted a record profit after tax of ₹9,513 crore for FY2025-26, a 27% year-on-year increase. ANI reported that IDBI Bank's gross non-performing assets declined from 31.78 per cent in September 2018 to 2.32 per cent in March 2026, while net non-performing assets fell from 17.30 per cent to 0.15 per cent over the same period. The bank posted a net profit of Rs 9,513 crore in FY26. ## Earlier Steps in the IDBI Bank Divestment On October 29, the government said the first bid round for IDBI Bank's strategic stake sale followed DIPAM's internal guidelines rather than rigid rules, NDTV Profit reported. On October 30, Finance Minister Nirmala Sitharaman defended the sale to Fairfax and accused Congress-era leaders of pressuring banks to lend to politically connected firms, NDTV Profit reported. BusinessLine reported on October 30 that the Finance Ministry said the government and LIC will benefit from their residual stake in IDBI Bank after the CCEA approved the sale of a 60.72% stake to Fairfax Financial Holdings for ₹81 per share. ## IDBI Bank Employees' Planned Strike TradingView reported on October 18 that IDBI Bank employees will hold a two-day hunger strike on November 2-3 over the proposed sale to Canada Inc., demanding that the Centre buy at least 6% of shares to maintain 51% ownership and a statutory assurance on service conditions. ## Companies in this story - [IDBI Bank company profile](https://akta.pro/company-profiles/0005fd3/idbi-bank) · website: http://www.idbi.com - [Fairfax Financial Holdings company profile](https://akta.pro/company-profiles/0000z3v/fairfax-financial-holdings) · website: http://fairfax.ca --- News for Agent · https://newsforagent.com/llms.txt