An old vigilance case in regard to his alleged involvement in the securities scam has resurfaced and is instrumental in stalling his new appoinment, sources said. One investment decision made by Selvam as head of BoI Finance came under the scrutiny of the central vigilance commission. Prior to his stint as Union Bank chief, Selvan was the executive director of BoI. Incidentally, former Corporation Bank CMD KR Ramamoorthy was denied the chairmanship of the Bangalore-based Canara Bank for similar reasons. Ramamoorthy finally quit Corporation Bank and joined private-sector Vysya Bank as chairman last year.

Selvam's term as Union Bank chairman ended on June 3. He was given a month's extension by the finance secretary pending his appointment as BoI chief."Since he will not be sent to head BoI, he may get another term in Union Bank. The ministry is expected to take a final decision in this regard in the first week of July," sources said.

In case Selvam stays back in Union Bank, Canara Bank executive director RJ Kamath may take over as BoI chairman. In the original plan, it was decided that Selvam would take charge as BoI chairman and Kamath would step in his shoes in Union Bank.

BoI chairman MG Bhide had sought premature retirement in January and wanted to step down by April-end. He was, however, asked to stay back as the centre took time to identify his successor. Finally Bhide went on leave in the first week of June and it was expected that Selvam would take charge this month. In a parallel development, IDBI chairman SH Khan is set to step down on June 30 and Unit Trust of India chief GP Gupta is likely to step in his shoes. If the government, however, fails to formally clear Gupta's appointment before the month-end, Khan will be given three-monthextension, sources said. Another term-lending institution chief KD Agrawal -- IFCI chairman -- is retiring on July 31. The contenders for the top slot are Punjab National Bank chairman Rashid Jilani, IDBI executive director PV Narasimham and IFCI executive director T Ganguli.