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Tamal Bandyopadhyay
Mumbai, July 19: The finance ministry is likely to opt for appointing two executive directors (EDs) at public-sector banks instead of one. The issue was discussed threadbare at the Appointments Board's meeting in Delhi on Saturday.
The board also zeroed in on Indian Bank CMD S Rajagopal for the top slot at Bank of India. Surprisingly, the subject of Unit Trust of India's chairmanship -- which has been lying vacant ever since GP Gupta left to take over as Industrial Development Bank of India chief -- did not come up for discussion. According to North Block sources, it has been accepted in principle to have two EDs at PSU banks to ensure smooth functioning.
"Often PSU banks witness serious ego clashes between the chairman and the executive director. The presence of two executive directors, shouldering different responsibilities, will certainly contribute to the efficient functioning of a bank," sources said. The Appointments Board, chaired by the Reserve Bank of India governor, makes recommendations to the Mumbai, July 19: The finance ministry is likely to opt for appointing two executive directors (EDs) at public-sector banks instead of one. The issue was discussed threadbare at the Appointments Board's meeting in Delhi on Saturday.
The board also zeroed in on Indian Bank CMD S Rajagopal for the top slot at Bank of India. Surprisingly, the subject of Unit Trust of India's chairmanship -- which has been lying vacant ever since GP Gupta left to take over as Industrial Development Bank of India chief -- did not come up for discussion. According to North Block sources, it has been accepted in principle to have two EDs at PSU banks to ensure smooth functioning.
"Often PSU banks witness serious ego clashes between the chairman and the executive director. The presence of two executive directors, shouldering different responsibilities, will certainly contribute to the efficient functioning of a bank," sources said. The Appointments Board, chaired by the Reserve Bank of India governor, makes recommendations to thegovernment for appointments of CMDs and EDs in public-sector banks and CEOs of financial institutions. The other members of the board are finance secretary Montek Singh Ahluwalia, RBI deputy governor SP Talwar, former State Bank chairman PG Kakodkar and N Seth of Indian Institute of Management, Ahmedabad. Special secretary-banking CM Vasudev is the the member secretary to the board.The Saturday meet did not discuss the candidates for the top job at the country's largest mutual fund UTI. Since Gupta's shift to IDBI, executive trustee PG Nayak has been holding the fort. While the IDBI has recommended executive director PS Subramanyam's name for the post, the North Block is backing Nayak to the hilt. The fight between the two--a banker and a career-bureaucrat--is likely to take dramatic turn as politicians might have the last say on the appointment of the UTI chief. With the finance ministry's acceptance of MG Bhide's resignation, the post of Bank of India's CMD has become vacant. Although the AppointmentsBoard cleared Union Bank CMD AT Pannir Selvam's name for the post, the cabinet secretary had shot it down. This is one of the rare cases where the board decision has been overruled.
Another recommendation of the board--for the top job at National Bank for Agriculture & Rural Development (Nabard) -- has also not been implemented by the ministry. The Appointments Board has favoured Divakar Deb, an IAS, for the job. Nabard chief P Kotaiah retired on May 31.
Meanwhile, Nabard managing director PVA Rama Rao has been give additional powers to take all important decisions till October 31 by the finance ministry.
According to sources in Delhi, at Saturday's meeting the board considered Allahabad Bank chief Harbhajan Singh and Dena Bank chairman Ramesh Mishra for the top job at Bank of India. However, Indian Bank CMD Rajagopal has got the nod. "It is still a little premature.... Still, Rajagopal has an edge over others," sources said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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