Fairfax Financial Holdings’ proposed acquisition of IDBI Bank has put its existing stake in CSB Bank under review, with the RBI giving the Canadian group two years to either merge CSB with IDBI or sell its stake. However, CSB’s board has not yet discussed the transaction, its MD & CEO Pralay Mondal said.

CSB Bank ’s board has not discussed Fairfax Financial Holdings ’ proposed acquisition of IDBI Bank or the future of its stake in CSB, with MD & CEO Pralay Mondal saying the lender has also not received any deposit from the Canadian financial services group. “Fairfax has no deposit with the bank,” Mondal said during the bank’s Q2 FY27 analyst call, responding to a question on reports that Fairfax had a Rs 4,000–5,000 crore deposit with CSB Bank. He added that the Rs 5,000-crore related-party figure disclosed in CSB Bank’s annual report does not pertain to Fairfax. “There could be other transactions, but nothing to do with deposits,” Executive Director B.K. Divakara said during the call. Advt

Mondal also said the CSB board has not discussed the IDBI transaction in its last two meetings and that the bank is not currently thinking through the implications of Fairfax’s proposed acquisition. “The second question on Fairfax, board have not even discussed this point in the last two board meetings,” Mondal said. He added that Fairfax has two years to decide on the two options available to it, while the IDBI transaction itself is yet to be completed. “At this point of time, they have the transaction to yet to complete, so it is too early to even discuss transaction,” Mondal said, pointing to pending share purchase agreements, regulatory approvals and other formalities.

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