B Sriram Resigned from SBI

In a shocking move, B Sriram, Managing Director of SBI has resigned after his appointment as chief executive of IDBI Bank, sources said. The development assumes significance amid reports that insurance behemoth LIC is mulling acquiring a majority stake in the debt ridden state-owned bank.

The government last week appointed Sriram as managing director and CEO of IDBI Bank for a temporary period of three months. He has put in his papers and his resignation from the board of SBI has been forward to Appointments Committee of the Cabinet (ACC) headed by Prime Minister Narendra Modi for acceptance, sources said, adding the competent authority will take a final call on the matter.

Sriram took charge of IDBI Bank on June 22 following M K Jain demitting office to take over as Deputy Governor of RBI.

The ACC approved the appointment of Sriram as MD and CEO of IDBI Bank for three months with effect from M K Jain's demitting office, said an order issued last week by the Department of Personnel and Training.

LIC is looking to enter the banking space by acquiring majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender's stressed balance sheet. A possible scenario would be the insurance major making IDBI Bank a subsidiary on the lines of its housing finance and mutual fund businesses.