Fairfax Financial Holdings intends to merge IDBI Bank, Digit Insurance and IIFL Capital Services under one financial service entity with the aim of developing a prominent financial institution in India providing banking, insurance, investment banking and wealth management services. This move was revealed by Fairfax on October 14, 2026 after being approved by the Indian government as the strategic buyer of 60.72 percent of shares of IDBI Bank for ₹52,878 crore.
According to Prem Watsa, Chairman & CEO, of Fairfax, the merger could assist the organization in leveraging the growth potential of the financial markets of India as well as making financial products accessible to individuals and business organizations. It is important to note that this proposed merger and integration have not been finalized yet.
Fairfax Latest News: Why Is It Planning to Combine IDBI Bank, Digit and IIFL Capital?
In the new business plan being considered, Fairfax will inject its interests in Go Digit Life Insurance and Go Digit General Insurance, collectively known as Digit, and its interests in IIFL Capital Services held by Fairfax India into IDBI Bank.
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It should be noted that Fairfax owns 49% of Digit and 30.2% of IIFL Capital. At the same time, Fairfax intends to raise its share in IIFL Capital up to 51% via open offer, according to its press release. With such a setup, IDBI Bank will become the parent company of banking, insurance, investment banking, and wealth management business segments.
“We are committed to building the world’s finest financial institution from India,” said Watsa in the statement. Further, he explained, “A combination of IDBI Bank, Digit, and IIFL Capital will position us to take part in the success of Indian markets.”
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