FSIB to soon start selection process for new LIC chairman this month

The Financial Services Institutions Bureau (FSIB), the headhunter for directors of state-owned banks and financial institutions, may select a new chairman of insurance behemoth LIC this month.

The chairman will be selected from the four managing directors of the company, sources said.

According to sources, the bureau may conduct an interview for the position towards the end of next week if all members of the committee are available.

FSIB is likely to make a selection this month, subject to the availability of members due to Parliament's Budget session, sources said.

The final decision on the FSIB recommendation will be taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi.

It can be noted that one of the managing directors BC Patnaik retires on March 31. The government has already appointed Tablesh Pandey as his replacement.

Currently, Siddhartha Mohanty, managing director of LIC, is acting chairman of the country's biggest life insurance firm after the completion of the term of MR Kumar on March 13, 2023.

Other managing directors in the race are Mini Ipe and M Jagannath. Mohanty is scheduled to retire in June while Ipe in August this year if they are not selected for the chairman position.

However, the chairman of LIC retires at the age of 62 years.

The government in 2021 extended the superannuation age of the LIC Chairman to up to 62 years by making an amendment to the Life Insurance Corporation of India (Staff) Regulations, 1960.

The changes made in the rules are called the Life Insurance Corporation of India (Staff) Amendment Rules, 2021.

It is to be noted that the retirement age for the top executives of the majority of PSUs is 60 years, barring a few exceptions, including the State Bank of India (SBI).

FSIB, the six members panel, is headed by the former secretary of the Department of Personnel and Training (DoPT), Bhanu Pratap Sharma.

Other members of the headhunter are the Secretary Department of Financial Services, the Secretary Department of Public Enterprises, IRDAI Chairman Debasish Panda, former LIC managing director Usha Sangwan and former Oriental Insurance MD A V Girija Kumar.