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Tuesday, Dec 21, 2004

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UTI Bank board to review splitting of CMD post

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Mr P.J. Nayak ... will he be asked to continue as CMD?

Mumbai , Dec. 20

IN a surprise development, UTI Bank has decided to hold a board meeting on Wednesday to reconsider its decision to split the post of Chairman and Managing Director into non-executive Chairman and Managing Director.

Senior officials with the bank confirmed that the board would meet to review its December 15 decision to split the post of CMD.

It is expected that Dr P.J. Nayak, Chairman and Managing Director, UTI Bank, whose five-year term is ending by December 31, will be offered the option of continuing as Chairman and Managing Director.

On December 15, the board had offered the position of Managing Director to Dr Nayak, which he reportedly turned down.

It was reported that the promoters of the bank had initiated the proposal to split the post of CMD, backed by other institutional shareholders.

The bank's move to call a board meeting again to reconsider its decision assumes significance in the wake of the resignation of Mr M. Damodaran as Chairman, UTI, on Sunday, banking sources said.

Unit Trust of India owns 33 per cent stake in the bank. There has been speculation that Mr Damodaran was toying with the idea of a merger between IDBI and UTI Bank.

However, Mr Damodaran denied having any such plans.

According to analysts, the appointment of a new chairman for UTI would have changed the situation and promoter may adopt a more flexible stand regarding the bank's top management structure.

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