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Journalism of Courage
The top management of IDFC Ltd, including the managing director and CEO Nasser Munjee, has quit, expressing unhappiness over the government’s proposal to merge the infrastructure entity with the State Bank of India.
‘‘We have submitted our resignations as there is no rationale given for a transfer of IDFC to SBI. We want to have an independent management for IDFC. Beyond this, it is for the government to decide,’’ Munjee said.
There was no “clear reasoning” as to how the action was going to benefit IDFC or improve infrastructure funding, he added. Asked if he would go back to his previous organisation HDFC, he said, ‘‘I will only look forward and have not decided on the future course of action as of now’’.
Those who have resigned are expected to remain with the company till April end. A board meeting is scheduled for April 20.
The central government and RBI hold 20 per cent and 15 per cent of IDFC, respectively. Foreign institutional investors hold 40 per cent. Other stakeholders in the company are IDBI with five per cent and local banks and institutions with a combined stake of 20 per cent.
Others among the management who have put in their papers are Urijit Patel, A.K.T. Chari, L.K. Narayana, Luis Miranda, M.N. Shah and Bipin Gemani.
