Prem Watsa-backed Fairfax seeks IDBI Bank and CSB Bank merger
Business
Fairfax Financial, the Prem Watsa-backed Fairfax Financial Holdings, is looking to merge IDBI Bank with CSB Bank.
Why? Because Fairfax owns big stakes in both, and India's central bank, the Reserve Bank of India (RBI), doesn't like one company having substantial ownership over two banks at once.
So, they've submitted an undertaking to the RBI hoping this merger will solve the overlap.
Fairfax plans merger under 1 license
Fairfax is aiming to get this sorted within two years by merging the banks under one license.
This way, they can keep running things smoothly while staying on RBI's good side.
The move should clear up any regulatory worries about conflicts of interest, so Fairfax can continue its business in India without any legal headaches.