IDBI Bank has proposed to increase the salary of MD and CEO Rakesh Sharma from Rs 2.64 lakh to Rs 20 lakh per month.
Private sector bank IDBI Bank has proposed to increase the salary of its Managing Director (MD) and CEO Rakesh Sharma by ten times. The bank has sought the approval of the shareholders for this decision.
Rakesh Sharma is said to have played a key role in getting the bank out of the RBI’s Restrictive Prompt Corrective Action (PCA) framework. The bank has requested the shareholders to give approval through postal ballot by 5th May 2022.
This process is going on from 6th April, the results of which will be announced on 7th May 2022.
The current salary of Rakesh Sharma is Rs 2.64 lakh per month, which the bank wants to increase to Rs 20 lakh per month.
Although the status of IDBI Bank is that of a private sector bank, 49.24 percent of its stake is with the government company LIC and 45.48 percent of the shares are directly with the government. That is, 94.71 percent of the shares of this bank are under government control in some form or the other.
Approval has also been sought for re-appointment of Sharma
The bank has also sought permission from the members to re-appoint Rakesh Sharma as MD and CEO. Sharma’s second term is running from March 19, 2022.
In mid-February 2022, the Reserve Bank had approved IDBI Bank for the reappointment of Sharma.
After the approval of the RBI, the bank had approved Sharma in a meeting of 24 February for the next term from March 19, but it is yet to get the approval of the members of the bank.
40 years of banking experience
Rakesh Sharma has 40 years of experience in Banking. He started his career with SBI. 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.
He also held the post of chairman of group companies in Canara 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 PCA framework in May 2017 from which the bank came out in March 2021.
