Canadian investor Fairfax Financial Holdings is seeking to transform IDBI Bank into a major financial services institution, with an ambitious plan to expand access to banking, insurance, investment and wealth management products for ordinary Indians following its proposed Rs 52,878-crore acquisition of a controlling stake.
Led by billionaire investor Prem Watsa, Fairfax offered Rs 81 per share for a 60.72 per cent stake, exceeding the government’s independent valuation benchmark of Rs 75.99. The offer represents a 56 per cent premium over the bank’s regulatory book value of Rs 51.85 as of March 31, 2026.
Peter Clarke, President and Chief Operating Officer of Fairfax, said IDBI Bank had the potential to become “the finest universal Indian bank with global reach”, helping raise India’s credit-to-GDP ratio and transform the lives of ordinary citizens.
The proposed strategy involves integrating Go Digit General Insurance, Go Digit Life Insurance and Fairfax India’s stake in IIFL Capital Services with IDBI Bank, enabling customers to access multiple financial products through a wider platform.
The government and LIC will retain a combined 34 per cent stake, while Fairfax assumes management control.
IDBI Bank’s transformation follows years of financial stress, including nearly four years under the RBI’s Prompt Corrective Action framework from May 2017 to March 2021. The lender has since returned to profitability, reporting around Rs 9,000-10,000 crore in the previous financial year.
The proposed integration remains subject to regulatory, shareholder and other approvals.
