The Hindu Business Line : RBI says no to Nayak being reappointed

Mumbai April 5 The Reserve Bank of India has denied approval for the re-appointment of Mr P.J. Nayak, Chairman and Managing Director, UTI Bank, when his term comes to an end on July 31. Mr Nayak has spent over seven years and six months as CMD of the bank.

The central bank has proposed a split in the office of Chairman and Managing Director in line with the recommendations of the Dr Ganguly Group Report on Corporate Governance, said a BSE announcement.

The BSE announcement further adds that Mr Nayak has informed the RBI and the Remuneration and Nomination Committee of the board of the bank that it would not be possible for him to function in a "different and lesser capacity" and therefore he would cease to be associated with the bank after his current term with the bank expires.

The board is planning to discuss future appointments at a meeting on April 17.On February 20, the board of directors of the bank had reappointed Mr Nayak as Chairman and Managing Director for an additional period of two years commencing August 1, 2007, subject to the approval of the Specified Undertaking of the Unit Trust of India and RBI.

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RBI says no to Nayak being reappointed