In the interim period, TimesBank executive director Pradeep K Pain will take care of the day-to-day affairs. Pillai, who took charge in 1994 on a four-year contract, after leaving State Bank of India, was instrumental in the setting up of TimesBank. Pillai has said that he does not intend taking up any new assignments as of now.

This is the second instance of a new private sector bank chief stepping down. In May, ICICI Bank chairman PV Maiyya made way for HN Sinor, the bank's executive director. Sinor, who took charge as the bank's managing director on June 1, was Central Bank of India executive director before joining ICICI Bank. Pillai's exit hascome at a critical juncture for TimesBank. The bank, which has just completed its third full year of operations, proposes to come out with its initial public offer during the second half of the current year. With the capital market under the weather, it remains to be seen what premium the bank will be able to charge. TimesBank's financial results for 1997-98 will be crucial in deciding the pricing of the shares.

The central bank, in a recent meeting with the chiefs of the new private sector banks that have not yet gone public, said that no further extensions would be given to banks and that they would have to launch their maiden offers during the current financial year.