# Fairfax gets 15 years to reduce stake in IDBI Bank to 26%

> Fairfax Financial Holdings to cut IDBI Bank stake to 26% over 15 years.
- Title: Fairfax gets 15 years to reduce stake in IDBI Bank to 26%
- Summary: Fairfax Financial Holdings to cut IDBI Bank stake to 26% over 15 years. Fairfax Financial Holdings will reduce its stake in IDBI Bank from 60.72% to 26% over…
- Keywords: fairfax financial holdings, idbi bank, reserve bank of india, csb bank, stake reduction, financial services group, merger, Fairfax, gets, years, reduce, stake
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/fairfax-gets-15-years-to-reduce-stake-in-idbi-bank-to-26/articleshow/134976446.cms
- Author: Saloni Shukla
- Published: 2026-10-15T20:39:00+00:00
- Read time: 1 min
- Topics: fairfax financial holdings, idbi bank, reserve bank of india, csb bank, stake reduction, financial services group, merger
## Fairfax Financial Holdings
Prem Watsa-backed Fairfax Financial Holdings will acquire a 60.72% stake in IDBI Bank.
## 15-year stake reduction
The Reserve Bank of India gives Fairfax 15 years to reduce its stake in IDBI Bank to 26%.
## CSB Bank decision
Fairfax has two years to decide whether to merge or sell CSB Bank, a Kerala-headquartered bank.
## IDBI Bank transaction
Fairfax plans to transform IDBI Bank into a unified financial services group spanning banking, insurance, investment banking, and wealth management.
## Stake reduction timeline
Fairfax must reduce its stake from 60% to 40% in the first 10 years and further to 26% over the next five years.
## Transaction completion
The IDBI Bank deal valued at ₹52,878 crore is expected to close by Q1 2027, with regulatory approvals underway.
## Leadership changes
Rakesh Sharma will continue as IDBI Bank's CEO, while former CSB Bank CEO C. V. R. Rajendran and former ICICI Prudential Life CEO N S Kannan will join leadership.
## Key takeaway

Fairfax Financial Holdings will reduce its stake in IDBI Bank from 60.72% to 26% over 15 years, with the transaction expected to close by Q1 2027.