Radhakrishnan takes over as new SBI chief

MUMBAI, Nov 30: State Bank of India managing director MP Radhakrishnan has become the new chairman at the country's largest commerical ba...

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MUMBAI, Nov 30: State Bank of India managing director MP Radhakrishnan has become the new chairman at the country’s largest commerical bank after Maya Shankar Verma declined to accept a six-month extension offered by the prime minister’s office.

Radhakrishnan will be at the helm of affairs for the next two months till January when he calls it a day. In a simultaneous development, deputy managing director GG Vaidya has been made managing director with effect from December 1 and, subsequently, chairman from February 1, 1999. Vaidya’s term will come to an end on October 31, 2000.

The government notification, signed by joint secretary M Damodaran, reached the State Bank headquarters in Mumbai after a day of high drama.

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Another deputy managing director V Janakiraman and State of Mysore managing director SR Iyer will be made managing directors over the next few months.

This is the first instance of a State Bank chief declining to accept extension as the ad hoc arrangement is not in the best interest of theinstitution. Verma refused to comment on the issue.

This is also the first instance of a SBI chairman for a short period of two months. On an earlier occasion, State Bank managing director MK Sinha was made officiating chairman for a month before he retired.

The announcement of Vaidya’s appointment as chairman two months before he actually takes over is also another first in the history of the State Bank. Traditionally, the announcement is made at the last moment keeping the SBI top brass in suspense.

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For Verma — who was well prepared to hang up his boots– the day started with a dramatic note as a phone call from the finance ministry informed him of his six-month extension with a promise of extending it by another six months.

However, Verma reportedly declined it as the ad hoc arrangement would not serve any purpose. He is believed to have had a talk with finance minister Yashwant Sinha on Monday morning and impressed upon him that such an extension would not work in the best interest of theinstitution.