Rakesh Sharma reappointed as MD&CEO of IDBI Bank for a period of 3 years

Rakesh Sharma's reappointment as the MD&CEO of IDBI bank has received the banking regulator, Reserve Bank of India's (RBI) nod.

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).