Government on Friday appointed Rakesh Sharma as managing director (MD) and chief executive officer (CEO) of IDBI Bank for six months.

On September 30, IDBI Bank's CEO and MD B. Sriram retired from his post after three months at the helm of the state-owned lender.

Sriram, who was previously the MD at State Bank of India, was moved to IDBI Bank to facilitate its merger with Life Insurance Corporation of India (LIC).

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.

IDBI Bank, which is also under Prompt Corrective Action (PCA) imposed by the Reserve Bank of India (RBI), widened its loss for the June quarter to Rs 2,409.89 crore. The bank had reported a loss of Rs 853.01 crore in the same quarter last year.

LIC has been looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender's stressed balance sheet.

First Published:Oct 5, 2018 6:48 PM IST