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IDBI Bank has appointed Hemant Bhargava as non-executive, non-whole time chairman. Bhargava is currently the Chairman (in-charge) and Managing Director of Life Insurance Corporation of India (LIC).
The bank said Bhargava has been appointed for three years or until he continues in his position at LIC.
The life insurer is now the majority shareholder in IDBI Bank with a 51 percent stake. It became the promoter of the bank after the acquisition of stake from the government of India.
LIC has also proposed a change of name of the bank to either LIC IDBI Bank or LIC Bank. IDBI Bank board had on February 4 approved a proposal to change its name subject to a ‘no objection’ from Reserve Bank of India, shareholders as well as name availability by Ministry of Corporate Affairs.
Bhargava, a postgraduate in Economics has a wide range of experience in LIC in various positions from senior branch manager to executive director, chief manager in Mauritius, executive director heading international operations, micro insurance and CEO of LIC Cards Services.
Insurance Regulatory and Development Authority of India (IRDAI) had in June 2018 made an exception when it allowed LIC to hold 51 percent in IDBI Bank. Insurance regulations state an insurer can hold only 15 percent equity stake in an entity to ensure there is no concentration of risks. In January 2019, LIC completed the deal with IDBI Bank.
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