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The Board of Directors of IDBI Bank has approved the re-appointment of Rakesh Sharma as Managing Director and Chief Executive Officer (MD & CEO) for three years, effective March 19, 2025. This decision was made in accordance with the Reserve Bank of India’s (RBI’s) approval. Sharma has been leading IDBI Bank since October 10, 2018. Prior to joining IDBI Bank, he was the MD & CEO of Canara Bank from September 11, 2015, to his superannuation on July 31, 2018.
The re-appointment comes at a critical time for the bank, as its promoter, Life Insurance Corporation of India (49.24% stake), and the second-largest shareholder, the Government of India (45.48% stake), have begun the process of disinvesting their stake in the bank. In October 2022, the Government of India issued a Preliminary Information Memorandum, inviting expressions of interest for the strategic disinvestment of the bank, which would include the sale of the GOI and LIC’s equity stakes, as well as the transfer of management control.
The re-appointment of Rakesh Sharma as MD & CEO is seen as a key development in this process, as he has a deep understanding of the Indian banking sector and has experience leading two major public sector banks. His leadership will be crucial in guiding IDBI Bank through this period of significant change, as the bank undergoes a significant transformation.
Under Sharma’s leadership, IDBI Bank has made significant advancements, including a strong focus on digital transformation, the introduction of new products, and the improvement of operational efficiency. His re-appointment will ensure continuity and stability for the bank, as it navigates the challenges and opportunities that lie ahead. Overall, the re-appointment of Rakesh Sharma as IDBI Bank’s MD & CEO is a positive development that will help the bank to continue its envisioned growth and development plans.