Fairfax to engage Parekh, Sukthankar to advise it on IDBI Bank acquisition

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Following the consummation of the proposed acquisition, the Prem Watsa-founded Fairfax expects that the operations of the new company would continue to be led by Rakesh Sharma, the current MD and CEO of IDBI Bank

By BL Mumbai Bureau

Updated - October 16, 2026 at 10:14 PM.

FILE PHOTO: A man rides his bicycle past the IDBI Bank headquarters in Mumbai, India, April 18, 2023. REUTERS/Niharika Kulkarni/File Photo | Photo Credit: NIHARIKA KULKARNI

Canada-based Fairfax Financial Holdings Ltd (FFHL) will engage Deepak Parekh, former Chairman of erstwhile HDFC Ltd, and Paresh Sukthankar, former Deputy Managing Director of HDFC Bank, as Advisors to help it with its proposed acquisition of IDBI Bank.

Following the consummation of the proposed acquisition, the Prem Watsa-founded Fairfax expects that the operations of the newly combined company would continue to be led by Rakesh Sharma, the current Managing Director and Chief Executive Officer of IDBI Bank.

Fairfax has already firmed up a leadership group for IDBI Bank, comprising CVR Rajendran, the former Chief Executive Officer of CSB Bank, as well as NS Kannan, the former Managing Director and Chief Executive Officer of ICICI Prudential Life Company and Chief Financial Officer of ICICI Bank, who will act as Chairman, all subject to approval of the Reserve Bank of India.

To make IDBI Bank a leading global Indian bank over time, Canada-based Fairfax Financial Holdings Ltd (FFHL) proposes to “contribute” all of its interests in Go Digit Life Insurance and Go Digit General Insurance (collectively, “Digit”) and all its interest in IIFL Capital Services Limited (IIFL Capital) to the Bank

Strategic buyer

FFHL, though its step-down subsidiary “10955230 Canada Inc”, recently emerged as a “strategic buyer” for a 60.72 per cent equity stake in the bank for a purchase consideration of ₹52,878 crore.

Fairfax currently expects the purchase price for the purchase transaction to be satisfied through a combination of cash on hand or otherwise available to Fairfax through existing credit sources and potential asset sales, per a FFHL statement.

.In connection with the contribution transactions, Digit and IIFL Capital would be contributed to IDBI Bank at their respective market prices, all in accordance with all applicable law and regulation, It added. As for FFHl’s 40 per cent shareholding in CSB Bank, RBI is believed to have Fairfax two years to decided on it.

Prem Watsa, Chairman and Chief Executive Officer of FFHL, said: “We are very excited to be selected by the Government of India to be the purchaser of the Government’s interest in IDBI Bank,” said . 

“This transaction represents a once-in-a-lifetime opportunity to purchase a majority interest in a bank in one of the world’s fastest growing economies and to combine it with a successful and growing insurance company and an established provider of investment banking and wealth management services in the same jurisdiction.”

Combined entity

Watsa emphasised that combining IDBI Bank, Digit and IIFL Capital would create an entity that is well-positioned to participate in the continued growth and success of Indian markets for many decades to come.

“We expect bank assets and deposits in India to continue to grow, and we feel that a newly-revitalized IDBI Bank that can also offer clients insurance products through Digit and investment banking and wealth management services through IIFL Capital would be in a very competitive position to take advantage of this growth,” he said, according to a statement issued by FFHL.

Fairfax does not expect there to be any change in the governance, management or operating structure of either Digit or IIFL Capital resulting from the proposed contribution transactions.

Published on October 16, 2026

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