The Hindu : Business : My resignation has played a key role, says Munjee

Online edition of India's National Newspaper
Wednesday, Apr 21, 2004

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My resignation has played a key role, says Munjee

By Oommen A. Ninan

MUMBAI, APRIL 20. The board of directors of Infrastructure Development Finance Corporation today decided not to merge the company with State Bank of India or any other financial institution. However, the board accepted the resignation of Nasser Munjee, Managing Director and Chief Executive Officer of the company.

"I am glad that my resignation has played a role in preserving IDFC's independency and private sector character and I hope that continues in the future,'' Mr. Munjee said while speaking to The Hindu. Mr. Munjee had resigned in protest against plans of the Government to merge IDFC with SBI. He had also led his other six top executives out of the institution. However, these six members, resigned along with him, withdrew their resignations few days before the board meeting today.

The IDFC Chairman, Deepak Parekh, accepted earlier Mr. Munjee's resignation alone on March 31, in consultation with the Government much before the board meeting, in a controversial circumstance.

The Government is holding a majority stake in IDFC along with other government-promoted financial institutions and the Government had earlier decided to merge IDFC with SBI.

"IDFC was the labour of love for me and we built it up from a few sentences in a piece of paper to a Rs. 6,000 crore company in a matter of six years,'' said Mr. Munjee, adding, "I think IDFC's contribution to infrastructure has been enormous touching every corner of infrastructure development in India in the past five years. I hope IDFC will continue to grow and play a significant role in the future.'' Mr. Munjee further said, "In the next 8-10 years I like to do what I want to do rather than make a new career and there are very interesting ideas that I am currently persuing".

The board also decided to work as a nodal agency for the Government's Rs. 50,000 crore Infrastructure Fund.

Other banks and financial institutions are also likely to take part in the consortia to disburse these funds and SBI is expected to be the lead institution.

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