UTI Bank Board Meet On July 31 Over JPC Report

Mumbai, July 25: | Updated: Jul 26 2002, 05:30am hrs
UTI Bank’s board of directors has decided to meet on Wednesday to look into the charges made by the Joint Parliamentary Committee (JPC) against chairman and managing director PJ Nayak. Sources at the bank said that except for NC Singhal, most of the other board members or their representatives are expected to attend the meeting.

The JPC in its draft report had charged that “Dr Nayak stood to gain” from the “failed merger” with Global Trust Bank (GTB).

“The person who will chair the board meeting is yet to be finalised but usually it is the seniormost person on the board. With Dr Nayak going on leave, the next seniormost person is Surendra Singh, said sources. “The board may form a small committee to conduct a complete investigation and prepare a thorough report,” sources added.

On Monday, Dr Nayak proceeded on a four-week leave after the JPC report on the “failed merger” deal hit the market. Sources close to the happening said Dr Nayak was taken by surprise and was hurt by the JPC report and decided to proceed on leave on his own account.

“He said that he would like the board to meet and conduct a probe as advised by JPC and only if the board gives a clean chit would he join back. In order to help the board to conduct a fair probe, Dr Nayak felt it was better that he was not in charge of the bank’s day-to-day proceedings,” sources told FE earlier.