Private lender IDBI Bank has proposed a nearly 10-fold hike in the salary of its managing director and CEO Rakesh Sharma, who had been instrumental in bringing the bank out of the RBI’s restrictive prompt corrective action (PCA) framework.

The bank has sought the approval of its shareholders through a postal ballot which started on April 6 and will end on May 5, to pass the ordinary resolution, among others.

The lender, in which LIC holds a majority stake, will declare the results of the postal ballot on or before May 7.

Members’ permission is also sought to re-appoint Sharma as the MD & CEO for another three years with effect from March 19, 2022.

“Approval of the members of the bank is hereby accorded to the payment of remuneration by way of salary, allowances and perquisites to Rakesh Sharma, as the MD and CEO of the bank with effect from March 19, up to Rs 2.4 crore approximately for FY2022-23, to be approved by the RBI,” IDBI Bank said in the filing.

Sharma draws a salary of Rs 2.64 lakh per month, while the bank has proposed to raise the salary to about Rs 20 lakh per month.

The perquisites involve the facility of semi-furnished accommodation, club membership, car for official purpose, entertainment expenses among others.