O P Bhatt, managing director of State Bank of Travancore, will take over as managing director of State Bank of India. | |
| The government today issued the notification, thus drawing curtains over the controversy surrounding the appointment of the managing director of the country's largest commercial bank. Bhatt has a long tenure till 2011. |
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| State Bank of Patiala managing director Yogesh Agarwal was the other contender for the post, which fell vacant after Ashok Kini retired in December 2005. |
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| This is a crucial appointment as the new MD is likely to succeed the current chairman AK Purwar, who is slated to retire next month. He has an edge over T S Bhattacharya, the other managing director, who does not have the two-year residual service, a precondition to become the chairman. |
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| However, a Delhi source said Bhatt may not automatically be made the chairman. "The issue is still wide open and the appointment committee will take up the matter by the end of this month," a Delhi source said. |
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| Current managing director Bhattacharya is also in the fray but he may not be considered for the top post as he has a year and eight months left to retire. |
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| Fomer managing director Vepa Kamesem could not get the top post with a similar residual tenure. If the government decides to make Bhattacharya the chairman, Agarwal will be made the other managing director. |
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| SBI has two managing directors looking after two portfolios - corporate banking group and national banking group. |
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| In September last year, five SBI senior executives were interviewed for the MD's post which fell vacant in December. |
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| The appointments' committee cleared Bhatt's name for the post but there was pressure from certain quarters to make Agarwal the MD as he had reportedly been groomed for the post. |
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| The finance ministry referred the file to the Prime Minister's Office (PMO) in March. The PMO raised a few questions but finally cleared the appointment today. |
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