NEW DELHI: THE cabinet’s appointments committee on Tuesday announced that B Sriram, currently one of three managing directors at the State Bank of India, will take additional charge as managing director and chief executive officer (MD & CEO) of state-run IDBI Bank.
According to the committee’s order approving the recommendation of the Department of Financial Services, Sriram will head IDBI for a “temporary” three months. The SBI MD will take over as MD & CEO of the stressed IDBI Bank after its current CEO MK Jain demits office. Jain has been appointed as a deputy governor of the Reserve Bank of India.
Sriram currently manages SBI’s corporate banking division, which houses a loan book exceeding `10 lakh crore as on March 31, 2018, including the bank’s large corporate, mid corporate and small and medium enterprise lending business.
IDBI Bank, meanwhile, is facing severe stress due to a gross NPA level of nearly 28 per cent at the end of March and is under the RBI’s prompt corrective action with restrictions on lending to risky borrowers. The bank is currently selling over `20,000 crore worth of stressed assets and reducing its dependence on corporate lending which currently constitutes more than half of its loan book.