Cabinet approved IDBI stake sale, but Central Bank and IOB are not up for sale?

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While the IDBI Bank stake sale was approved by Cabinet, stake reductions in Central Bank and IOB are to meet SEBI's 75% public shareholding rule, not privatisation. The Union Cabinet approved the sale of a 60.72% stake in IDBI Bank to a Fairfax subsidiary for ₹52,878 crore. However, reports regarding Central Bank of India and Indian Overseas Bank concern minor stake reductions to achieve 75% government ownership in line with SEBI rules, as reported by The Week. Although NITI Aayog previously shortlisted both lenders, no final decision on privatization has been announced.

1 claim checked
3 sources
Checked 2 Nov 2026
Main source: Cabinet approves Rs 52,878 crore IDBI Bank sale to Fairfax arm in India’s largest financial-sector FDI - The Economic Times

The post we checked

The reports are real, but there is an important distinction to make regarding what is happening next. Following the Cabinet’s October 2026 approval of a 60.72%…

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What we checked

The Cabinet approved a 60.72% stake sale in IDBI Bank to Fairfax Financial Holdings for ₹52,878 crore.“The Union Cabinet on Wednesday approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings’ subsidiary, M/s 10955230 ... for Rs 52,878 Crore”Cabinet approves Rs 52,878 crore IDBI Bank sale to Fairfax arm in India’s largest financial-sector FDI - The Economic Times

Connected

The same claim was checked in another Reel (@unknown, ): “The Indian government approved the sale of IDBI Bank to Canadian company Fairfax for ₹52,878 crore.”, found false (see it)

What the post doesn't tell you

The reported stake sales in Central Bank of India and Indian Overseas Bank are to lower government ownership to 75% in compliance with SEBI's public shareholding rules by August 2026, not a privatisation push.
IDBI Bank employee unions opposed the majority stake sale to Fairfax and held a strike in November 2026 (Economic Times).
The Finance Ministry defended the valuation methodology and stated Fairfax's bid was above benchmark estimates (Economic Times).

Short version

🌗 PARTLY TRUE 👉 While the IDBI Bank stake sale was approved by Cabinet, stake reductions in Central Bank and IOB are to meet SEBI's 75% public shareholding rule, not privatisation. 👉 The Union Cabinet approved the sale of a 60.72% stake in IDBI Bank to a Fairfax subsidiary for ₹52,878 crore. 📰 Sources: The Week, Daily Financial 🔎 Full check: send this post to @checkthis.chat