IDBI-LIC deal will change the existing setup for sure and for the better
NEW DELHI: Retired bureaucrats, preferably with finance ministry portfolio are in demand. After the appointment of former bureaucrat GC Chaturvedi as non-executive chairman of ICICI Bank by its board, names of three more retired bureaucrats are under consideration for heading three public sector Banks, as non executive chairman, including IDBI.
"There are many retired bureaucrats, who are still very active engagement. Their name is under consideration for the post of non-executive chairman for the LIC-IDBI Bank. Most of them have worked with the finance ministry in the past so it will be easier for them to run the revamped setup of IDBI-LIC Bank," a senior official from the finance ministry told TNIE.
According to the sources among the names which are doing rounds are Shaktikant Das, former revenue secretary, who is also member of 15th finance commission. Another official is D.K Mittal who has served as secretary Department of Financial services under the Ministry of Finance. Even name and C.B Bhave, former SEBI chief is doing rounds. Interestingly these name were also under consideration for the post of non executive chairman of ICICI bank, by its board.
"IDBI-LIC deal will change the existing setup for sure and for the better. However the transition needs a person which is aware of the working of both the premium institutions, a reason why this arrangement is being though of. They will help in the smooth transition, management of manpower and also help in resolution of stressed loans," the official added.
The centre is already planning to finalise the acquisition of state-owned IDBI Bank by Life Insurance Corporation of India in three-four months to ensure the lender’s balance-sheet shows an improvement by next fiscal.
Apart from IDBI-LIC, government is considering non-executive chairman for two other PSBs including Allahabad Bank and UCO Bank.
