Canada's Fairfax on Course to Take Record Foreign Stake in an Indian Bank

Fairfax Financial Holdings Ltd. is the frontrunner to buy a majority stake in IDBI Bank Ltd., according to people familiar with the matter, in what could be the biggest foreign investment in India’s banking sector. Shares rose.

Fairfax, founded by Indian-born Canadian billionaire Prem Watsa, is in advanced talks with the government and is considered ahead of rival bidders, the people said, asking not to be identified because the process is private. The 61% stake that the government and a state-run insurer hold in the private lender is worth about $8 billion at the current market price.