The proposed sale of a majority stake in IDBI Bank to a Canadian buyer marks a significant change in the bank’s ownership. The deal has raised questions about what the transition could mean for existing customers and fixed deposit (FD) holders.
The Cabinet Committee on Economic Affairs (CCEA) approved the strategic disinvestment of IDBI Bank, paving the way for the sale of a combined 60.72% stake held by the Government of India (GoI) and Life Insurance Corporation of India (LIC).
M/s 10955230 Canada Inc., whose parent entity is Fairfax Financial Holdings Ltd., has been approved as the strategic buyer.
According to IDBI Bank’s Q1 FY27 presentation for the quarter ended June 2026, total deposits stood at ₹3,25,757 crore, up 10% year-on-year. With a large depositor base, the ownership transition raises questions about deposit security, existing FD terms, and banking charges. Here is what experts have to say.
What does the stake sale mean for FD holders and savings account customers?
Aakash Bansal, CEO & Co-Founder of MIDASX, said, “There is no immediate reason for depositors to worry. A change in ownership does not affect the bank’s obligation to repay its depositors.”
IDBI Bank will continue to be regulated by the RBI. Deposits are insured by DICGC up to ₹5 lakh per depositor per bank, including principal and interest. Customers can continue banking as usual, he added.
Sanjeev Rajput, Founder-CEO of Capital Connect, said the sale changes the bank’s ownership, not its obligations to depositors. Existing FDs remain contracts with the bank, and their interest rate, tenure and maturity value stay as agreed, whether the majority owner is the government or a Canadian investor.
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