India may give Canada's Fairfax Financial a two-year period to consolidate its banking interests in the country, according to an Economic Times report citing sources. The proposed arrangement is linked to Fairfax's purchase of a controlling interest in IDBI Bank.

The report describes consolidation as a requirement for the acquisition. It also says the government and Life Insurance Corporation are working to finalise the transaction. However, the supplied information does not establish that the purchase has been completed or that the proposed time allowance has received final approval.

Fairfax already has Indian banking holdings, making their consolidation a part of the proposed deal rather than a separate development. The available report does not explain how those interests would be combined, what steps Fairfax would need to take, or when the two-year clock would begin.

For now, the key development is the possible flexibility on timing. The supplied details do not specify the acquisition price, the exact stake being purchased, or a completion date. They also do not set out any proposed changes to IDBI Bank's operations.