Smita Harish Kuber replaces P. Sitaram as IDBI Bank CFO

Smita Harish Kuber has been appointed as the new chief financial officer (CFO) of IDBI Bank with effect from April 1, 2023. In a regulatory submission on Tuesday, the bank said that Kuber will replace P. Sitaram, ED and CFO, who will retire on attaining superannuation on 31 March 2023.

“The Board of Directors of the Bank has, at its meeting held on March 28, 2023, approved the appointment of Smt. Smita Harish Kuber, Chief Financial officer and Key Managerial Personnel of IDBI Bank with effect from April 01, 2023 in place of Shri P. Sitaram, ED & CFO, who will retire on attaining superannuation on March 31, 2023," said IDBI Bank in its regulatory filing.

Kuber is a chartered accountant and has more than 25 years of banking experience including five years of experience in handling finance and accounts and taxation matters in IDBI Bank, as per the filing.

The bank also informed that Samuel Joseph Jebaraj, Deputy Managing Director, IDBI Bank has resigned from his position. The resignation will come in effect from April 5, 2023.

“Deputy Managing Director (Lending & Project Finance) on the Board of National Bank for Financing Infrastructure and Development (NaBFID), Shri Samuel Joseph Jebaraj, DMD, has, vide letter dated March 27, 2023, tendered his resignation from the position of Deputy Managing Director of the Bank with effect from close of business on April 05, 2023. Shri Joseph's resignation was noted by the Board of Directors at its meeting held today and he would be relieved from the service of the Bank with effect from the close of business on April 05, 2023," said IDBI Bank in its filing.

Earlier this month, the Centre said the disinvestment of IDBI Bank is on track as per the defined process. The Department of Investment and Public Asset Management (DIPAM) said that the government will not defer the $4 billion IDBI Bank divestment plan at any cost.

On Tuesday, a government source told Business Today Television that the Centre hopes to seek financial bids within three months for the proposed stake sale in IDBI Bank.

"The RBI has sought more information, which is part of the process. All papers need to be scrutinised. Security clearance from MHA and fit and proper clearance from the RBI would be necessary for the bidders to move to the second stage of the bidding process - due diligence and the subsequent invitation of financial bids," an official said.

The Centre is confident of executing the transaction in fiscal 2023–24. "The geopolitical situation has impacted market sentiment and also minority stake sales, but we have to move ahead carefully since the external factors will always exist", an official shared.

The privatisation of IDBI Bank will be a first-of-its-kind deal for the Indian banking space as the government expects it to set the stage for the sale of two state-run banks. The Centre and LIC together own 94.71 per cent stake in the bank. The government owns 45.48 per cent of IDBI Bank, and is planning to divest a 30.48 per cent stake in the bank.

Whereas, insurance major Life Insurance Corporation of India (LIC) plans to see a 30.24 per cent of its stake from its holding of 49.24 per cent in the bank.

LIC is currently the promoter of IDBI Bank with Management Control and the government is the co-promoter. In 2019, LIC injected Rs 21,624 crore into the bank.

Also read: Financial bids for IDBI Bank likely by June

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