Prem Watsa, the 75‑year‑old Canadian investor known as "Canada’s Warren Buffett," has long seen India as a growth engine, launching Fairfax India in 2014 and backing five banking and insurance firms that now represent almost a third of the company’s portfolio.
Watsa’s latest bet—a $5.6 billion purchase of 60.7% of IDBI Bank—pushes that exposure to the field of financial services. The acquisition follows a series of smaller stakes in firms such as IIFL Finance, IIFL Capital and 5paisa, and comes two years after Fairfax’s $2.3 billion buy‑out of a stake in Bangalore International Airport.
The deal must pass the Reserve Bank of India’s regulatory review, which will scrutinise Fairfax’s concentration in the banking sector. RBI has already warned that the bank’s balance sheet must be re‑balanced and that the company will need to divest or restructure its holdings in Catholic Syrian Bank and Go Digit to stay within the 30% ownership ceiling.
Employees at IDBI’s Hyderabad branch, where the bank serves over 1.2 million customers, will see a shift in leadership. One teller, 32‑year‑old Kiran Patel, said he expects the new ownership to bring more capital for digital services, though he worries about potential layoffs.
The next step is a formal RBI approval, expected by mid‑July, after which Fairfax will announce a board reshuffle and a roadmap for integrating its Indian operations with the bank’s existing governance framework.