LIC top posts may stay vacant

LIC needs an MD to look closely into the recently bought IDBI Bank where LIC is the largest shareholder. LIC has been handed the task of turning around the bank that has a high share of non-performing assets on its books

After having a new chairman and two managing directors in Life Insurance Corporation of India (LIC) recently, the country's largest life insurer is unlikely get replacement for the remaining senior top management positions, which have been either lying vacant for a long time or may fall vacant soon.

As per the recruitment process, all appointments made at LIC need prior approval from the Appointments Committee of the Cabinet, or ACC, headed by the Prime Minister. With the Lok Sabha elections nearing, it is, however, expected that no new appointments will be made in the near future.

"As the NDA government has already gone into an election mode, the appointment of any senior position in LIC is unlikely. We don't see any further recruitment drive till July ◗ this year and appointments or replacements may be delayed as well," a top finance ministry source told Financial Chronicle.

"There are many senior positions lying vacant, not only in LIC but also in other public sector entities and all of them are waiting for the ACC's approval. As far as LIC is concerned, I think it has a bleak chance so far in this regard," the source said.

Unlike other private sector entities, most LIC top management positions are filled purely on the basis of seniority and the number of years left for their retirement and outsiders are not appointed.

As far as current vacancies are concerned, LIC Managing Director (MD) Sunita Sharma will retire on March 31, while two other MDs - B Venugopal and Hemant Bhargava--will step down on May 31 and July 31, respectively.

Also, the largest life insurer has to look after recently bought IDBI Bank where LIC is the largest shareholder. Therefore, it is also anticipated that LIC needs an MD to look closely into the bank as the insurer has been handed the task of turning around the bank that has a high share of non-performing assets on its books.

As LIC has been maintaining a huge balance sheet of Rs 29.67 lakh crore, each MD looks after one particular segment, be it products, investments or sales.