Related StoriesHDFC Life Q2 net up 13.6% at ₹508 crore, net premium income rises 15.7%Canara Bank expects to beat FY27 growth guidance, sees NIM improvingNo ‘right of first refusal’ to Fairfax for residual stake sale in IDBI BankInsurance reforms: IRDAI chief says job loss concerns are misplacedImportant StoriesReliance hits back at Musk, says Jio’s satellite services also await clearancesWindfall levies reduced on diesel, hiked on petrolMutual funds suspend bulk subscriptions to gold ETFs ahead of festival seasonSC upholds Bombay HC order quashing Yes Bank AT-1 write-offKochi Port set to cruise into the future of AI immigrationFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. Fairfax proposes to contribute its interests in Digit, IIFL Capital to IDBI Bank Fairfax CEO emphasises that combining IDBI Bank, Digit, and IIFL Capital would create an entity that is well-positioned to participate in the continued growth and success of Indian markets By BL Mumbai Bureau Updated - October 16, 2026 at 11:01 AM.×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/fairfax-proposes-to-contributeits-interests-in-digit-iifl-capital-to-idbi-bank/article71591189.eceCopy To make IDBI Bank a leading global Indian bank over time, Canada-based Fairfax Financial Holdings Ltd (FFHL) proposes to “contribute” all of its interests in Go Digit Life Insurance and Go Digit General Insurance (collectively, “Digit”) and all its interest in IIFL Capital Services Ltd (IIFL Capital) to the Bank.

FFHL, through its step-down subsidiary “10955230 Canada Inc”, recently emerged as a “Strategic Buyer” for a 60.72 per cent equity stake in the Bank for a purchase consideration of ₹52,878 crore.

Fairfax currently expects the purchase price for the purchase transaction to be satisfied through a combination of cash on hand or otherwise available to Fairfax through existing credit sources and potential asset sales, per an FFHL statement.

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In connection with the contribution transactions, Digit and IIFL Capital would be contributed to IDBI Bank at their respective market prices, all in accordance with all applicable law and regulation, it added. As for FFHL’s 40 per cent shareholding in CSB Bank, RBI is believed to have given Fairfax two years to decide on it.

Prem Watsa, Chairman and Chief Executive Officer of FFHL, said: “We are very excited to be selected by the Government of India to be the purchaser of the Government’s interest in IDBI Bank.

“This transaction represents a once-in-a-lifetime opportunity to purchase a majority interest in a bank in one of the world’s fastest growing economies and to combine it with a successful and growing insurance company and an established provider of investment banking and wealth management services in the same jurisdiction.”

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Watsa emphasised that combining IDBI Bank, Digit, and IIFL Capital would create an entity that is well-positioned to participate in the continued growth and success of Indian markets for many decades to come.

“We expect bank assets and deposits in India to continue to grow, and we feel that a newly revitalised IDBI Bank that can also offer clients insurance products through Digit and investment banking and wealth management services through IIFL Capital would be in a very competitive position to take advantage of this growth,” he said in a statement issued by FFHL.

Fairfax does not expect there to be any change in the governance, management or operating structure of either Digit or IIFL Capital resulting from the proposed contribution transactions.

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Following the consummation of the proposed purchase transaction and contribution transactions, Fairfax expects that the operations of the newly combined company would continue to be led by Rakesh Sharma, the current Managing Director and Chief Executive Officer of IDBI Bank.

Fairfax also plans to include in the leadership group for IDBI Bank C VR Rajendran, the former Chief Executive Officer of CSB Bank, as well as NS Kannan, the former Managing Director and Chief Executive Officer of ICICI Prudential Life Insurance Company and Chief Financial Officer of ICICI Bank, who will act as Chairman, all subject to approval of the Reserve Bank of India.

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