In June, B Sriram had replaced Mahesh Kumar Jain, who was appointed as the deputy governor of the Reserve of Bank India (RBI).
Sriram, who was previously the Managing Director at State Bank of India, was moved to IDBI Bank to facilitate its merger with Life Insurance Corporation of India (LIC).
The appointments committee of the cabinet has approved Sriram’s appointment as CEO of IDBI Bank for a temporary period of three months with effect from Jain’s demitting office, the order issued by the personnel ministry said.
LIC has received approval to increase its stake in the bank to a maximum of 51 percent to help it stay afloat amid the bad loan crisis it is currently grappling with.
The lender’s net NPAs stood at 18.76 percent at the end of June, higher than the 16.69 percent at the end of the previous quarter and 15.8 percent at the end of the same quarter last year.
The IDBI Bank board is expected to meet on October 4 to consider a preferential allotment of equity shares aggregating to 51 per cent of the post-issue paid-up capital of the bank to LIC.