According to a highly-placed source in the finance ministry, the committee has zeroed in on Dena Bank chairman-cum-managing director (CMD) Ramesh Mishra as its choice for the Nabard post. The Dena Bank CMD, however, when contacted at his Mumbai office, denied having received any official intimation.

Sources also say that Allahabad Bank executive director Samal will succeed Mishra as Dena Bank's CMD if Mishra goes to Nabard. Mishra came to Dena Bank in 1995 from United Bank of India, where he was executive director, in place of K Kannan, who joined Bank of Baroda as its chairman. Mishra retires in February 2000.

Mishra's name, which has reportedly been cleared by the committee, will be forwarded to the PMO's desk, but only after it has meandered its way through a maze of departments, including banking andpersonnel. Convention dictates that this procedure be followed each time before the final appointment of a public-sector bank or development bank chairman, managing director, or executive director is made. Thus, the whole process could take some time.

The issue of Nabard chairmanship has been occupying centrestage for quite some time now because of recent controversies surrounding the appointment. A few days before Kotaiah stepped down, the name of Divakar Dev, a senior IAS officer from the UP cadre, and who is now with the Rural Electrification Board, was doing the rounds. Earlier, Dev was on deputation with Nabard. There was also talk of State Bank of India deputy managing director (DMD) GG Vaidya being appointed Nabard chairman, but neither of these have yet materialised.

At Nabard recently, YC Nanda was promoted to managing director from executive director. He succeeded PVA Rama Rao, who retired on October 31, 1998.