The Cabinet on Wednesday approved the sale of a 60.72% stake in IDBI Bank to Canadian billionaire Prem Watsa-led Fairfax Financial Holdings for Rs 52,878 crore, marking India’s largest foreign investment in the financial services sector and bringing a five-year-old strategic disinvestment process close to completion. The transaction, which values the Mumbai-based lender at around Rs 87,100 crore, comes amid a wave of mergers and acquisitions in India’s financial sector. Japanese lenders alone spent more than $6 billion acquiring stakes in Indian banks last year, including deals involving Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group.