MUMBAI: Canadian financial group Fairfax plans to consolidate its holdings in insurance and capital markets under IDBI Bank after being selected as the strategic buyer for a 60.7% stake in the lender for Rs 52,878 crore, creating a financial services group spanning banking, insurance, investment banking and wealth management.Fairfax proposes to transfer its interests in Go Digit Life Insurance and Go Digit General Insurance, collectively known as Digit, to IDBI Bank. It also plans to contribute its interest in IIFL Capital Services, which provides investment banking and wealth management services.The proposed transfers would be undertaken at the respective market prices of the businesses and would require regulatory approvals. Fairfax had invested in IIFL in 2015 and subsequently partnered Kamesh Goyal to launch Go Digit general and life insurance.The group also outlined plans for the leadership of the combined bank. Rakesh Sharma, IDBI Bank’s current managing director and CEO, is expected to continue leading its operations. Fairfax plans to bring CVR Rajendran, former CEO of CSB Bank, into the leadership team and appoint NS Kannan, former CEO of ICICI Prudential Life and CFO of ICICI Bank, as chairman, subject to RBI approval.The proposed transfers are not expected to change the management or operating structures of Digit or IIFL Capital. Digit will continue to be led by founder and chairman Goyal, while IIFL Capital’s management team, led by R Venkataraman, Vasudev Jagannath and Nemkumar H, will continue to run its capital markets, investment banking, wealth and asset management and mutual fund distribution businesses.Fairfax plans to consolidate its banking, insurance and capital markets businesses under IDBI Bank, combining the lender with Digit and IIFL Capital to expand its financial services reach and boost India’s credit-to-GDP ratio. The Rs 52,878-crore acquisition values IDBI Bank at Rs 81 per share, a 23% premium to its June 30, 2026, book value.
