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  1. IDFC announces board members and management team for IDFC Bank

IDFC announces board members and management team for IDFC Bank

Infrastructure finance company, IDFC Ltd., on Thursday named board members and a new management team consisting both of insiders and external hires, to lead its banking venture, IDFC Bank Ltd.

By: | Mumbai | Updated: September 24, 2015 7:19 PM
IDFC bank

IDFC will demerge its bank venture, IDFC Bank, in which it will transfer the financing undertaking.

Infrastructure finance company, IDFC Ltd., on Thursday named board members and a new management team consisting both of insiders and external hires, to lead its banking venture, IDFC Bank Ltd.

The nine-member board of IDFC Bank will be led by Rajiv Lall as the executive vice-chairman and managing director, while the former union home secretary Anil Baijal will be the non-executive chairman on the board. Lall is currently the executive chairman of IDFC Ltd.

“We are fortunate to have an experienced and diverse team as part of the board and management. It provides strong reassurance about the quality of strategic and operational guidance available to IDFC Bank,” Lall said.

The announcement comes ahead of IDFC’s plans to start lending business through IDFC Bank Ltd., from October 1. The Reserve Bank of India had granted a license to the company on July 23 for starting a bank.  IDFC Bank will its begin operations with Rs 55,000 crore loan book, and with 23 branches. By April 2016, IDFC Bank will have 60 branches across India.

IDFC Bank to start lending services from October 1

IDFC will demerge its bank venture, IDFC Bank, in which it will transfer the financing undertaking. It will issue one share each in the new company for one equivalent share held in it by shareholders, the company said in a filing to the stock exchange on Monday. The demerger will be effective from October 1, while the record date for the demerger has been fixed for October 5.

After the demerger IDFC will hold 53% stake in the banking venture through a fully-owned subsidiary holding company, IDFC Financial Holding Co. Ltd., while the remainder will be with other investors of IDFC.  The demerger will see IDFC’s net-worth decline to Rs 9540 crore from Rs 15,940 crore, while that of IDFC Bank will swing to Rs 13,300 crore from a negative Rs 2.5 crore now, the company said in a stock exchange filing.

During the current quarter that ends September, IDFC said it will report a one-time loss in its fiscal second-quarter earnings as the company would use Rs 2500 crore for creation of specific provisions against stressed assets, from its statutory reserves, as approved by the regulator. “These provisions are far in excess of the regulatory requirement and exceptional in nature as indicated in our investor call post our quarterly results for quarter ended June 30,” it said.

Other members of the board include former controller and auditor general, Vinod Rai, Infosys chair professor for agriculture at ICRIER Ashok Gulati, former managing director for operations at the World Bank Gautam Kaji, former Goldman Sachs managing director Ajay Sondhi, former Citibank India CFO Abhijit Sen, founder of Swadhar Microfinance Veena Mankar, and MD & CEO of IDFC Vikram Limaye.

The management team includes Ajay Mahajan as the head of commercial and wholesale banking, Animesh Kumar as the head of HR, Brand & Foundation, Avtar Monga as the chief operating officer, Naval Bir Kumar as the head of personal and business banking, Pavan Kaushal as the chief risk officer, Rajeev Uberoi as the general counsel and head of audit, controls and compliance, Ravi Shankar as head of Bharat Banking and Sunil Kakar as CFO.

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Tags: IDFC
  1. K
    Keshav
    Sep 25, 2015 at 3:40 am
    Good enough , informative.
    Reply

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