Fairfax Financial to acquire 60.72% of IDBI Bank for ₹53,000 crore

Fairfax Financial Holdings, the Canadian conglomerate controlled by billionaire Prem Watsa, will acquire a 60.72% majority stake in IDBI Bank by purchasing shares held by the Government of India and LIC. The acquisition is valued at $5.5 billion (₹53,000 crore).

The deal marks a watershed moment for India's decade-long push to privatise state-owned banks. Critics have long dismissed government privatisation plans as politically unfeasible and operationally too complex. IDBI Bank's transition to foreign private control demonstrates policymakers are serious about executing banking reforms.

However, the RBI has imposed a regulatory constraint: a single promoter cannot control two separate banking licences. Fairfax already holds a majority stake in CSB Bank, which means this acquisition will likely trigger a mandatory merger between CSB Bank and IDBI Bank.