Extension For Verma At Sbi Ruled Out

The race for the chairman's post at State Bank of India has begun in right earnest and the government is expected to commence the selection process over the next few days. Stung by the criticism over the delay in announcing the chairman and managing director of Industrial Development Bank of India (IDBI) the government might announce the name of the new SBI chairman in advance.

Finance ministry sources state that SBI will have a new chairman and the current chairman M.S. Verma will not get an extension. This is in line with the thinking in the government that there will be no extensions after the age of 60. In fact, even S.H. Khan, former chairman and managing director of IDBI, who was 60 did not get an extension.

Verma retires in November 98 and he is expected to replaced by M P Radhakrishnan, managing director, SBI. SBI has two managing directors and the other O.P. Sethia will be retiring before Verma. Radhakrishnan however retires in January 1999.

Sources say it is yet to be decided if Radhakrishnan should be made chairman or a deputy managing director with a longer tenure. When D Basu had retired as chairman of SBI, the then managing director M K Sinha was made chairman for a month. After Sinha retired, P G Kakodkar was appointed chairman.

The senior officials at SBI after Radhakrishnan are G G Vaidya, who was managing director, State Bank of Travancore and IS now deputy managing director at SBI. The other senior official is V Jankiraman, deputy managing director and chief credit officer. However, G G Vaidya is senior to Jankiraman by a few months and hence stands a better chance to be made chairman. Vaidya also has the experience of running a bank.

Sources point out Vaidya might first be made managing director of State Bank after O.P SetHia retires and subsequently appointed chairman. In case Radhakrishnan is made chairman, then Jankiraman is expected to be made managing director in his place. This succession plan of SBI is likely to vetted by the government in the next few days.