Former Canara Bank chief Rakesh Sharma named CEO of IDBI Bank for 6 months

Sharma retired from as CEO of Canara Bank in July 2018; he replaces B Sriram, who headed IDBI Bank until September this year

The Appointments Committee of the Cabinet has approved Rakesh Sharma as the next managing director (MD) and chief executive officer (CEO) of IDBI Bank, for a period of six months from the date he assumes office. 

Sharma retired from his post as CEO of Canara Bank in July 2018 having been appointed in 2015. He will replace B Sriram, who was the CEO of IDBI Bank until September this year.

In exchange filings on Friday, IDBI Bank said that it has issued a postal ballot notice given the ongoing stake sale of the bank to the Life Insurance Corporation of India (LIC). 

LIC will acquire a 51 per cent stake in the bank and will be classified as 'promoter' of the bank once the transfer of shares and controlling stake is completed. Further, the bank will increase its authorised share capital from Rs 80 billion to Rs 150 billion. 

The deal involves LIC acquiring a little over two billion equity shares of face value of Rs 10, representing 26 per cent of the voting equity share capital of the bank. After completion of the open offer, LIC will hold four billion equity shares in the public sector bank.