Fairfax to appoint Deepak Parekh, Paresh Sukthankar as advisers to IDBI

Fairfax Financial Holdings is set to appoint banking industry veterans Deepak Parekh and Paresh Sukthankar as advisers to IDBI Bank, said Chairman & Chief Executive Officer V Prem Watsa in an analyst call. “We benefit greatly from having Deepak Parekh, former Chairman of HDFC Limited and the founder of HDFC, and Paresh Sukthankar, former Deputy Managing Director of HDFC Bank, as our advisors,” Watsa said. In addition, they also plan to bring in CVR Rajendran, former CEO of CSB Bank, as another advisor. This follows the Cabinet’s approval on Wednesday for the sale of a 60.72% stake in IDBI Bank to a subsidiary of Fairfax Financial Holdings for Rs 52,878.08 crore. The transaction is the largest foreign direct investment in India’s financial sector. “Rakesh has done a superb job and will continue as CEO. We will add to the bank's Board N.S. Kannan, who is the former Managing Director and CEO of ICICI Prudential Life, and former Executive Director and CFO of ICICI Bank, as he will be Chairman of IDI - IDBI Bank, subject to RBI approval,” Watsa added. The IDBI Bank acquisition leaves Fairfax with a regulatory challenge over CSB Bank, in which it owns about 40%, as Reserve Bank of India rules do not permit a promoter to control two banking licenses. Asked about its plans, Watsa said they would examine the options. “The RBI has given us two years to make a decision as to what we do. So we're going to look at all of that. There's lots of time for it, and we'll make a decision at the time, and we'll let you know when we make the decision.” In a press release on Thursday, Fairfax said that it plans to bring Go Digit and IIFL Capital Servies under IDBI Bank. Watsa expects all transactions to be completed by the first quarter of 2027. “But it could happen sooner, too, but we are just waiting for all of that. We are working through the regulatory bodies. And so we expect the process to go as quickly as it can.”

Fairfax to appoint Deepak Parekh, Paresh Sukthankar as advisers to IDBI

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