Fairfax plans to fold other Indian financial holdings into IDBI Bank (updated)

IDBI Bank

15/10/2026 12:24

Added details from Fairfax call throughout
MUMBAI, Oct 15 (Reuters) - Fairfax plans to transform IDBI Bank IDBI.NS into a diversified financial services group by bringing its existing Indian investments in insurance, investment banking and wealth management under the lender, the Canadian firm said on Thursday.
India on Tuesday approved the sale of a 60.7% stake in IDBI Bank to Fairfax Financial Holdings FFH.TO in a deal valued at 528.78 ‌billion rupees ($5.56 billion), making it one of the country's largest cross-border banking transactions.
Fairfax already owns a 30.2% stake in IIFL Capital Services IIFS.NS, which runs investment banking and wealth management businesses, and is in the process of raising it to 51% through an open offer, according to the Canadian firm.
It also has a 49% stake in Digit, which has general GODG.NS and life insurance operations.
The Canadian investment group now plans to make IDBI Bank the holding company for the two businesses by transferring their stakes to the lender.
The merger of Fairfax's financial investments into IDBI Bank will be subject to approvals from the banking and insurance regulators.
Rakesh Sharma, the current CEO of IDBI Bank, will lead the proposed combined entity, while N.S. Kannan, the former managing director and CEO of ICICI Prudential Life, will serve as its chairman, according to Fairfax. C.V. Rajendran, the former CEO of CSB Bank, would also take a leadership roles.
Fairfax said it does not expect any changes to the governance, management or operating structure of Digit or IIFL Capital following the proposed restructuring.
Separately, CSB Bank CSBB.NS, in which Fairfax holds a 40% stake, said on Thursday it was not involved in any negotiations or discussions on a merger with IDBI Bank.
In a conference call, Fairfax Financial Holdings Chairman Prem Watsa said the RBI has given the company two years to decide whether to merge or sell CSB Bank.
Faifax, in its call, also said the purchase of IDBI stake will be funded by cash on the books of the holding company, dividend from subsidiaries, potential asset sales and contributions of Digit and IIFL Capital.
Fairfax Financial Holdings had cash and securities worth $4.6 billion as of June-end.
    
    

 (Reporting by Gopika Gopakumar; Editing by Mrigank Dhaniwala, Nivedita Bhattacharjee and Leroy Leo)
 ((Gopika.Gopakumar@thomsonreuters.com;))