Fairfax, a Canadian financial group, has agreed to buy a 60.7% stake in IDBI Bank for ₹52,878 crore, thereby transferring its Digit life and general insurance businesses and IIFL Capital Services into the lender’s portfolio.
The deal will see IDBI Bank’s current CEO Rakesh Sharma retain control, with Fairfax planning to bring former CSB Bank chief CVR Rajendran onto the board and former ICICI Prudential Life CEO NS Kannan as chairman, subject to RBI clearance.
Regulatory approval from the Reserve Bank of India and other authorities will be required before the transfer of Digit and IIFL Capital can be finalized.
Valued at ₹81 per share, the purchase price represents a 23% premium to IDBI’s book value as of June 30, 2026, strengthening the bank’s balance sheet.
By combining banking, insurance, and capital markets, Fairfax aims to broaden its service offerings and push India’s credit‑to‑GDP ratio higher.
The RBI is slated to review the proposal in the coming weeks, after which the integrated entity will launch its expanded product suite.