The board of IDBI Bank, which was recently acquired by the LIC, on Sunday said it is considering a proposal to appoint Rakesh Sharma, the current MD of the bank, for a further period of three years as MD and CEO of the bank. Furthermore, a joint task force has been constituted, chaired by the senior management of IDBI Bank and LIC, to chart out the future roadmap, both for the bank as also for the associate companies.
The bank sits on huge non-performing assets of Rs 55,360 crore. Sharma’s six-month term as MD and CEO is set to end in April this year. The bank said it’s working towards professionalising and broad-basing its board and has already inducted “two new eminent professional” independent directors — a professor from Indian School of Business and a retired executive director of Reserve Bank of India – on the board. The bank, which was reeling under huge bad loans, reported a loss of Rs 4,185 crore in the December quarter of 2018-19. Its losses in FY 2017-18 were Rs 8,237 crore.
According to the bank, the chairman of LIC has been appointed as the non-executive chairman of the bank.
“Additionally, a Working Group has been created to carry forward the initiatives identified for synergy and to effectively implement the decisions taken at the management level,” the bank said on Sunday.
“The new board will be entrusted with the responsibility of charting out a fresh growth strategy for the bank as also revamp the corporate governance structure to ensure best-in-class business practices,” it said. The bank has also started reviewing all its policies including credit, investment and its internal processes, risk management practises, etc with the help of consultants.
The bank has already started the process of appointing two new deputy managing directors for the bank, which will be through open competition from the market. “Greater opportunities will emerge for employees of the bank as it strengthens its financials through business growth,” it said.
IDBI Bank and LIC, through its collective network of branches, offices and workforce, have started leveraging their mutual business synergies.
The bank’s board has approved appointment of LIC as a corporate agent under bancassurance. The bank has also started revamping its Performance Measurement System (PMS) – IDBI Performance Assessment and Continuous Evaluation (i-PACE) – to make it more objective and system-driven.