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IDBI Bank will get reward for getting out of tough times! Proposal to increase MD-CEO’s salary by 10 times, approval sought from shareholders

Private sector bank IDBI Bank has proposed to increase the salary of its Managing Director (MD) and CEO Rakesh Sharma by ten times.

Private sector bank IDBI Bank has proposed to increase the salary of its Managing Director (MD) and CEO Rakesh Sharma by ten times, which is yet to be approved by the shareholders. Sharma was instrumental in getting the bank out of the RBI’s restrictive prompt corrective action (PCA) framework. The bank has sought approval from the shareholders for their opinion on this through postal ballot by May 5, 2022. This process is going on since 6th April. Its results will be announced on 7 May 2022.

Sharma’s salary is Rs 2.64 lakh per month and the bank has proposed to increase it to Rs 20 lakh per month. LIC has a majority stake in the bank. Earlier IDBI Bank was a public sector bank but now it is a private sector lender in which LIC holds 49.24 per cent stake. The government has 45.48 percent stake in the bank, that is, the government and LIC together have a 94.71 percent stake in it.

Approval has also been sought for re-appointment of Sharma

The bank has also sought permission from the members to re-appoint Sharma as MD and CEO. Sharma’s second term is running from March 19, 2022. The central bank RBI had approved IDBI Bank for Sharma’s reappointment in mid-February 2022. After the approval of RBI, the bank in a meeting on 24 February approved Sharma for the next term from 19 March but it is yet to get the approval of the members of the bank.

40 years of banking experience

Sharma has 40 years of experience in Banking. He started his career with SBI and handled many responsibilities in the country and outside the country. From the post of Chief General Manager of SBI, he became MD and CEO of Lakshmi Vilas Bank. He was in Lakshmi Vilas Bank from 7 March 2014 to 9 September 2015. After this, he worked in Canara Bank as MD and CEO from 11 September 2015 to 31 July 2018. In Canara Bank, he also held the position of chairman of the group companies of the bank. After Canara Bank, he is in the post of MD and CEO in IDBI Bank since 10 October 2018. RBI placed the bank under the PCA framework in May 2017 from which the bank could come out in March 2021. (Input: PTI)

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