Fairfax named strategic buyer for 60.72% of IDBI Bank and plans to contribute its Digit stakes

Fairfax Financial Holdings said on 14 October 2026 that the Government of India had declared one of its subsidiaries the “Strategic Buyer” in the auction for a 60.72% equity interest in IDBI Bank. The price is INR 81 per share, or about INR 528.78bn (around US$5.6bn). Fairfax says this is about 23% above the bank's book value at 30 June 2026, and it will pay from cash, existing credit sources and possible asset sales.

For insurers, the main point is that Fairfax plans to contribute all of its interests in Go Digit General Insurance and Go Digit Life Insurance to IDBI Bank at market price. Fairfax India Holdings would also contribute its stake in broker IIFL Capital Services. Fairfax says Digit would gain distribution through the bank. Digit founder Kamesh Goyal said the move “would significantly strengthen Digit's distribution footprint”, and Digit's leadership would not change.

The transaction is not final. Fairfax says no binding definitive agreements have been signed and that the deal may not close on these terms or at all. The purchase needs Reserve Bank of India approval. The two contributions also need approval from the Securities and Exchange Board of India, and the Digit contribution needs approval from the Insurance Regulatory and Development Authority of India. The bank purchase can close without the contributions.

Fairfax expects IDBI's managing director Rakesh Sharma to keep leading the business, with N. S. Kannan, a former chief executive of ICICI Prudential Life, as chairman, subject to RBI approval. Chairman Prem Watsa called the deal “a once-in-a-lifetime opportunity”. Insurance Business reported that India's cabinet approved the sale on 14 October, and that the government and Life Insurance Corporation of India would keep about 15% and 19% respectively after closing.