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RBI gives Fairfax two years to decide on CSB Bank; merger with IDBI or stake sale: Prem Watsa

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RBI gives Fairfax two years to decide on CSB Bank; merger with IDBI or stake sale: Prem Watsa

RBI gives Fairfax two years to decide on CSB Bank; merger with IDBI or stake sale: Prem Watsa

RBI has given Fairfax two years to decide on the future of CSB Bank, with a merger with IDBI Bank or a stake sale on the table, Fairfax Chairman Prem Watsa said. Watsa, who has backed India for over three decades, said banking could be the next-best investment after real estate as an economy undergoes rapid growth.

Canadian billionaire Prem Watsa-led Fairfax Financial Holdings has two years to decide whether to merge its existing banking asset CSB Bank with IDBI Bank or exit its stake in the lender, following its proposed acquisition of a 60.72 per cent stake in IDBI Bank. Fairfax currently holds around 40 per cent in CSB Bank. Watsa, speaking on a global conference call following the government's approval of Fairfax's IDBI acquisition, said the group has two options for CSB — merge the lender with IDBI Bank or sell its stake, and will take the decision within the two-year window. “We have two licenses, and 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, and we'll make a decision at the time. And we'll let you know when we make the decision,” Watsa said during a global conference call following Fairfax's approval to acquire a 60.72 per cent stake in IDBI Bank.


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