IDFC in search of new MD

The Infrastructure Development Finance Company (IDFC) is in the look out for a new managing director after the exit of Nasser Munjee in protest against the government's plan to merge the company with the State Bank of India (SBI).

Sources said IDFC may advertise in newspapers looking for the right candidate to head the organisation.

No SBI executive will be sent to IDFC, as was the earlier plan, as SBI seems to be not keen on taking over the management control of the core sector funding company.

Earlier it was planned that SBI, which holds a six per cent stake in the company, will be given the government' stake as well as the Reserve Bank of India pushing its holding to 41 per cent.

However, with the multinational stakeholders' planning to exit private sector IDFC after its "nationalisation", SBI would have needed to pick up the 40 per cent foreign stake in the company.

Sources said that the SBI is not willing to cough up Rs 700 crore (the cost of picking up the foreign stake) to take the management control of IDFC which has around a Rs 4,500 crore asset base.