Ex-SBI MD Divakar Gupta to join Aditya Birla Group firm

To join company as consultant, will guide it for its planned entry in banking sector

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Diwakar Gupta, former managing director and chief financial officer (CFO) of State Bank of India (SBI), is set to join Aditya Birla Finance, an Aditya Birla Group company, as consultant and guide the company for its planned entry into the banking sector.

Aditya Birla Finance is part of Aditya Birla Nuvo, one of the 26 companies that have applied for new banking licences.

Earlier, Aditya Birla Group had roped in A K Khound, former chief general manager of the Reserve Bank  of India (in charge of the department of banking development and operations), as advisor.

Gupta retired from SBI in July. Arundhati Bhattacharya, who was promoted to the post of managing director, is the bank’s new CFO. It is learnt Gupta has urged the government and the regulator for relaxation in the cooling period for senior public sector bank executives.

These executives have to secure the approval of authorities before joining a private sector company immediately after retirement.

Many corporate banking aspirants that have applied for bank licences are roping in bankers. Former Corporation Bank chairman and managing director V K Chopra has been roped in by the India Infoline group, while former Bank of Baroda chairman M D Mallya’s experience would come in handy for the Tata Group if it secures a banking licence. A C Mahajan, former chairman of Canara Bank, has been recruited by Religare as an independent director. Spice group has roped in S C Kalia, former executive director of Union Bank of India.

An alumnus of St Stephen’s College, Gupta was managing director and CFO of SBI from April 2011 to July 2013.

Earlier, he was deputy managing director of the bank and group executive for the bank’s rural business and national banking. He has also served as the chief executive officer of SBI Cards and Payment Services, the bank’s credit card joint venture with GE Capital. He was also director, National Securities Depository, the first and largest depository in the country.

After former SBI chairman O P Bhatt retired in 2011, Gupta was in the race for the top spot. However, Pratip Chaudhuri was appointed to the post.