New Delhi: In a major development in the banking sector, the Union Cabinet on Wednesday approved the strategic restructuring of IDBI Bank. The government has decided to sell 60.72 per cent stake in IDBI Bank to Fairfax Financial Holdings for Rs 52,877 crore, the biggest strategic disinvestment after Air India.

IDBI Bank's stake purchase by Fairfax is the largest FDI in India's financial sector so far, the government said.

Government and Life Insurance Corporation (LIC) will together hold 34 per cent stake in IDBI Bank post restructuring, I&B Minister Ashwini Vaishnaw said at the Cabinet briefing.