Govt ap­points Rakesh Sharma as IDBI chief

Mint Asia ST - - News - BRY EMYA N AIR

The

gov­ern­ment on 5 Oc­to­ber ap­pointed se­nior banker Rakesh Sharma as man­ag­ing direc­tor (MD) and chief ex­ec­u­tive of­fi­cer (CEO) of IDBI Bank.

Sharma was ap­pointed for six months or un­til fur­ther or­ders and will have the task of en­sur­ing a smooth trans­fer of ma­jor­ity own­er­ship from the gov­ern­ment to Life In­surance Cor­po­ra­tion of In­dia (LIC).

Sharma is a former MD and CEO of Ca­nara Bank and was among the few bankers hired in 2015 from the pri­vate sec­tor to lead big state-run banks.

He takes over from B. Sri­ram, former MD of the State Bank of In­dia (SBI), whose short three-month term at the helm of IDBI Bank ended last month.

LIC is in the process of tak­ing over ma­jor­ity own­er­ship of IDBI Bank as it looks to start its bank­ing foray at the len­der.

On Thurs­day, it made an open of­fer for 26% of IDBI shares amount­ing to more than ₹ 12,000 crore.

LIC’S tak­ing over of IDBI Bank has been crit­i­cized over the cor­po­ra­tion us­ing pub­lic money to bail out a weak, loss- mak­ing bank.

The bank’s losses widened to ₹ 8,237.92 crore in the fi­nan­cial year ended 31 March from ₹ 5,158 crore in the pre­vi­ous year.

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