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There is churning at the top in IDBI Bank's two group entities.
IDBI Federal Life Insurance managing director (MD) & chief executive officer (CEO) G V Nageswara Rao is leaving at the end of this month.
Sanjay Sharma, chief executive and managing director of IDBI Intech Ltd, has decided to end his innings at the information technology services arm of IDBI Bank.
Senior IDBI Bank executives confirmed the developments. The shortlisting process for selecting a new CEO at the insurance company is underway.
Sharma is serving his notice period. His successor would be from within the IDBI. Rao would be joining the National Securities Depository Ltd, sources said.
Earlier this month, IDBI Federal Life announced it had achieved breakeven in 2012-13, its fifth year of operations. The company reported a maiden profit of Rs 9.24 crore in 2012-13. Life insurers, on an average, take eight to 10 years to break even.
IDBI Federal started its operations in March 2008 and has a range of trademarked insurance products including Wealth-surance,Income-surance and Retiresurance.
Before this assignment, Rao was CEO of the commercial banking strategic business unit of IDBI Ltd. Rao was earlier MD & CEO of IDBI Bank Ltd, which merged with parent institution IDBI. He once headed IDBI Capital Markets. IDBI Federal's new business premium grew 23 per cent in 2012-13, which compares with a fall of 15 per cent posted by the sector. It saw a 44 per cent increase in the number of new business policies sold over 2011-12.
More assets under management
The company's assets under management moved up 24 per cent, from Rs 2,208 crore to Rs 2,732 crore during the current year. IDBI Federal has a paid-up share capital of Rs 800 crore. IDBI Fortis is a joint venture of IDBI Bank, Federal Bank and Fortis Insurance International, with shareholding of 48 per cent, 26 per cent and 26 per cent, respectively.
