Just a few days before the retirement of YSP Thorat as chairman of the National Bank for Agriculture and Rural Development (Nabard), a huge drama is unfolding over who his successor will be. Thorat will superannuate on November 30.

A top level panel headed by the governor of the Reserve Bank of India (RBI), YV Reddy, interviewed four candidates: V Sridhar, chairman & managing director of National Housing Bank, KG Karmakar, managing director of Nabard, and two executive directors of Nabard, SK Mitra and Amaresh Kumar.

The Reddy panel rejected all of them even though they were short-listed out of a long list of candidates who had applied for the top post at the apex bank for agriculture and rural development.

It was then suggested that Thorat be given extension. But the ministry of finance rejected this proposal on the plea that the Nabard Act provided that the managing director could remain in charge in case the post of chairman fell vacant.

Finding itself in a piquant position, the ministry, with the approval of finance minister P Chidambram, has now formed a search committee to find out the right candidate for the post. The search committee is headed by noted economist Hanumantha Rao. Agriculture secretary, PK Mishra, and Vepa Kamesham, former deputy governor, RBI, and Amitav Verma, joint secretary at the ministry of finance are the other members for the panel.

The panel had already one round of meeting and is meeting again on Tuesday to discuss the issue. If the search committee is not able to finalise a suitable name for the post, the ministry may again consider giving an extension to Thorat. Thorat was a managing director of Nabard before being appointed as chairman in April 2006.

Karmakar, who was interviewed, has around five years of services. The chairmanship of Nabard is equivalent of deputy governor of RBI.

Some of the members of the Reddy panel are finance secretary Suba Rao, banking secretary Vinod Rai (as member secretary), management consultant Pritam Singh, former chairman of State Bank of India Janaki Ballav, deputy governor of RBI, V Leeladhar.

The Nabard Act provides that the ministry of finance with the consultancy of RBI has to select the chairman of Nabard.