BREAKINGVIEWS — India’s bank privatisation offers cautious win — win

(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Ujjaini Dutta BENGALURU, Oct 15 (Reuters Breakingviews) — Canada’s Fairfax is set to acquire 61% of IDBI Bank for $5.6 bln, the largest foreign bet on an Indian lender. For the buyer, it's a cheap valuation and it delivers an okay return for state rescuer LIC. But the deal will test whether New Delhi is really willing to stand back. Full view will be published shortly. Follow Ujjaini Dutta on LinkedIn and X. Context News Canada's Fairfax Financial Holdings is set to buy 60.7% of India's IDBI Bank for 528.78 ‌billion rupees ($5.56 billion), the Indian government said in a press release on October 14. The government named Fairfax as its preferred strategic buyer but no binding agreements have been signed. If a deal goes through, it would represent the largest foreign direct investment into the financial sector. New Delhi and state-controlled Life Insurance Corp of India will each sell a roughly 30% stake. The government will retain a 15% stake and LIC a 19% stake after the transaction. They will withdraw from the bank's board and become public shareholders. Fairfax will offer 81 rupees per share