Fairfax buys IDBI for US$5.6 billion in India’s biggest bank deal

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Photo by Laura Pedersen/National PostCanadian billionaire Prem Watsa’s Fairfax Financial Holdings Ltd. will acquire a stake in IDBI Bank Ltd. for 528.78 billion rupees (US$5.6 billion), making it one of biggest foreign investment in India’s rapidly growing financial services sector.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountFairfax joins a wave of foreign firms expanding in India, drawn by the burgeoning wealth class and the world’s fastest-growing major economy. Japanese lenders alone spent more than US$6 billion combined, buying stakes in Indian banks last year, including deals by Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc.This advertisement has not loaded yet, but your article continues below.Prime Minister Narendra Modi’s government has been looking to sell the Mumbai-based lender for several years, part of its efforts to pare state ownership in the banking sector. But the sale had often run into hurdles such as delays in securing regulatory approvals.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againFairfax, whose earlier bid for IDBI Bank failed to meet the government’s reserve price, was considering increasing its offer by a few rupees per share, Bloomberg News had reported.The latest breakthrough in the IDBI stake sale will be seen as a shot in the arm for Modi who is seeking to convert India into a developed economy by 2047. To achieve his ambition of boosting gross domestic product 10 times to about US$30 trillion by 2047, funding from banks must increase to about 130 per cent of GDP from around 56 per cent.Indian authorities have been discussing ways to create stronger and larger banks, including more foreign participation in India’s financial sector. It is also toying with the idea of merging state-run banks to create financial giants.With assistance from Rajesh RoyThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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