IDBI Bank on Thursday informed the stock exchanges that its board has approved the reappointment of Rakesh Sharma as the managing director and chief executive officer (MD&CEO) of the bank for a period of three years, effective March 19, 2022.
Sharma's reappointment as the MD&CEO of the bank has received the banking regulator, Reserve Bank of India's (RBI) nod, the exchange notification said. Sharma was initially appointed as the MD&CEO of the bank in October 2018.
The move comes amid the government’s effort to privatise the bank by selling a part of its stake. LIC, which is the promoter of the bank, is also expected to sell some part of its stake in the bank in the privatisation process. However, it has expressed its intention of not fully exiting the bank, given the strategic partnership it has with the lender when it comes to the bancassurance business.
LIC had picked up a 51 per cent stake in IDBI Bank in 2019. Subsequently, in 2020, it reduced its shareholding to 49.24 per cent. Currently, the government of India and LIC hold 94.71 per cent in the bank.
It has been reported that the government may start roadshows with investors for the strategic disinvestment of IDBI Bank from February 25. And, expressions of interest may be invited subsequently.
Sharma was previously the MD&CEO of Canara Bank and retired from this position in July 2018. Prior to that, he served as the MD&CEO of Laxmi Vilas Bank from March 2014 to September 2015. He was previously associated with the State Bank of India (SBI).
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU