Idbi Bank Seeks Shareholders Nod To Hike Ceo And Md Salary By 10-fold

IDBI Bank‘s postal ballot began on April 6 and will continue till May 5. The result of the Postal Ballot shall be declared within two working days from the conclusion of the remote voting i.e on or before May 07, 2022.

On February 24, 2022, following RBI’s approval, IDBI Bank approved the re-appointment of Sharma for a period of three years with effect from March 19, 2022, however, subject to approval from the members of the bank.

In its postal ballot note, IDBI Bank proposed the re-appointment of Rakesh Sharma as the MD and CEO of the bank. In its filing, the bank said, “..pursuant to the recommendation of the NRC and the Board of Directors of the Bank, approval of the Members of the Bank, be and is hereby accorded to the payment of remuneration by way of salary, allowances, and perquisites to Rakesh Sharma, as the MD & CEO of the Bank w.e.f. March 19, 2022, subject to the approval of RBI.” It added, “Sharma’s salary up to ₹2,40,00,000 approximately for FY 2022-23, to be approved by the RBI.”

Further, IDBI Bank’s filing said, “Any revision, in salary and perquisites shall be recommended by the NRC & Board and subject to RBI approval,” adding, “he Board or any Committee thereof, be and is hereby authorised to revise the remuneration payable to Shri Rakesh Sharma, during his tenure as MD & CEO of the Bank, subject to the approval of RBI, from time to time.”

IDBI Bank is seeking to increase Sharma’s salary up to ₹20 lakh per month.

Explaining the rationale behind seeking a hike in Sharma’s salary, IDBI Bank said Rakesh Sharma has done “a commendable job in bringing the bank out of PCA and improving the overall performance of the bank during his tenure,” reported by PTI.

The bank further stated that the promoters and stakeholders of the bank have also shown confidence in him since he has been able to bring transformational changes in the bank.

IDBI Bank added, “Rakesh Sharma is fit and proper to be re-appointed as MD&CEO pursuant to the fit and proper norms issued by the RBI.

Also, IDBI Bank stated that Sharma has given his consent to be re-appointed and is not disqualified from being appointed as a director on the board of the bank. Sharma possesses the requisite qualifications, skills, experience, and special knowledge required for the said post.

Rakesh Sharma is a seasoned banker with a total stint of over 40 years in various Banks. He started his banking career at the State Bank of India (SBI) and held various responsibilities at SBI. He then moved to Lakshmi Vilas Bank Ltd. as MD & CEO and served there for a period of 18 months. He retired from Canara Bank as MD & CEO after serving for a period of 3 years, in July 2018. He has expertise in Accountancy, Agriculture & Rural Economy, Banking, Economics, Small Scale Industry, HR, Business Management, Administration, and Corporate Governance. He is currently holding the position of President of the Governing Body of Entrepreneurship Development Institute of India (EDII) and Deputy Chairman of the Indian Bank’s Association (IBA).