Fairfax Financial of Canada, viewed as a leading contender for the government's stake in IDBI Bank, may be permitted up to two years to bring its banking holdings in India into line with regulations, Reuters has reported.
The planned disposal of a majority holding in IDBI Bank by the federal government and state insurer Life Insurance Corp of India (LIC) has moved into the final phase after a prolonged process.
Reuters said the deal is valued at more than $5 bn and would rank as the largest foreign investment in an Indian bank.
Reserve Bank of India (RBI) rules do not allow one entity to own and run two separate banks. Fairfax holds about 40% of CSB Bank, a smaller lender.
Two sources cited by Reuters said the investor could be given as long as two years to either exit that CSB position or combine CSB with IDBI Bank.
#India #years #canada #insurance
The planned disposal of a majority holding in IDBI Bank by the federal government and state insurer Life Insurance Corp of India (LIC) has moved into the final phase after a prolonged process.
Reuters said the deal is valued at more than $5 bn and would rank as the largest foreign investment in an Indian bank.
Reserve Bank of India (RBI) rules do not allow one entity to own and run two separate banks. Fairfax holds about 40% of CSB Bank, a smaller lender.
Two sources cited by Reuters said the investor could be given as long as two years to either exit that CSB position or combine CSB with IDBI Bank.
#India #years #canada #insurance
5 days ago
