Fairfax to combine Go Digit, IIFL Capital with IDBI Bank after stake sale

Fairfax plans to transfer its Go Digit and IIFL Capital interests to IDBI Bank. The restructuring would create a diversified group spanning banking, insurance, investment banking and wealth management. IDBI CEO Rakesh Sharma to lead; NS Kannan as chairman. New Delhi,Oct 15, 2026 14:33 ISTFairfax Financial Holdings plans to bring its existing Indian financial investments under IDBI Bank, combining its interests in Go Digit and IIFL Capital Services with the lender to create a diversified financial services group.The proposed restructuring will involve transferring Fairfax’s 49% stake in Digit and 30.2% stake in IIFL Capital Services to IDBI Bank, making the lender the holding company for all three businesses, the company said in a statement.“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, and we expect it will provide meaningful and significant benefits to Indian consumers and businesses,” the company said.The proposed group would have businesses spanning banking, insurance, investment banking and wealth management. The development follows the government’s approval of the sale of a 60.7% stake in IDBI Bank to Fairfax in a deal valued at Rs 52,878 crore ($5.56 billion), one of India’s largest cross-border banking transactions.Fairfax is also in the process of raising its stake in IIFL Capital Services to 51% through an open offer, according to the company. The proposed restructuring is subject to approvals from banking and insurance regulators. Fairfax said it does not expect changes to the governance, management or operating structure of Digit or IIFL Capital Services as a result of the plan.IDBI Bank CEO Rakesh Sharma will lead the proposed combined entity. NS Kannan, former managing director and CEO of ICICI Prudential Life Insurance, will serve as chairman, while CV Rajendran, former CEO of CSB Bank, will also take a leadership role.- Ends