IDBI Bank has sought permission from shareholders to increase the salary of its CEO and Managing Director Rakesh Sharma by 10 times. Apart from this, he also has to get its approval from RBI. The bank has extended the tenure of Sharma for 3 years.
New Delhi . IDBI Bank has sought permission from shareholders to increase the salary of its CEO and Managing Director Rakesh Sharma. The bank wants to increase the salary of Rakesh Sharma by 10 times. Rakesh Sharma played a big role in bringing the bank out of RBI’s Prompt Corrective Action List.
The approval was sought from the shareholders by the bank through postal ballot and its results are expected to come before May 7. Actually, the company has to announce the results within 2 days of voting. Since the voting has started on 6th April and will end on 5th May, it is being speculated that the results will be out on 7th May or before. IDBI is a private sector bank.
Who is Rakesh Sharma
Rakesh Sharma became MD and CEO of IDBI Bank in October 2018. Prior to this, he was the Managing Director and CEO of Canara Bank from 2015 to 2018. At the same time, before Canara Bank, Sharma was the Managing Director and CEO of Lakshmi Vilas Bank from 2014 to 2015. At the same time, before that he was associated with State Bank of India for about 30 years.
Proposal to re-appoint CEO
In the postal ballot note, IDBI has proposed to re-appoint Rakesh Sharma as MD and CEO of the company. Although the bank has extended his tenure for 3 years in February, but its approval is yet to be received from other members of the bank. The extended tenure of Rakesh Sharma is effective from March 19, 2022 and is approved by RBI. The bank has written in the postal note that it is proposed to keep Rakesh Sharma’s salary at Rs 2.40 crore for the financial year 2022-23, which is yet to be approved by the RBI.
Rakesh Sharma’s current salary
At present, IDBI gives Rakesh Sharma Rs 2.62 lakh per month as salary. The bank wants to increase it to Rs 20 lakh per month. That is, the annual salary of Rakesh Sharma will be 2.40 crores.
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