Bhattacharya may succeed Purwar at SBI

Tara Sankar Bhattacharya, managing director, State Bank of India, is likely to be made the bank's chairman.

The finance ministry today asked him to "coordinate the day-to-day affairs of the bank with effect from June 1 until further order".

Incumbent chairman AK Purwar retired today. The finance ministry note pointed out that the financial and administrative power attached to the post of chairman would be exercised by Bhattacharya with the approval of the central board of directors of the bank.

A source close to the development said Bhattacharya would eventually be made the chairman. The finance ministry directed him to hold charge today as the Prime Minister's Office has not cleared his file yet.

The PMO is likely to clear his appointment next week.

The government is set to make an exception in Bhattacharya's case and make him the chairman even though he does not have two years of residual service. He has 20 months to retire. He joined the bank as a probationary officer in September 1969.

"Considering his experience at the board level, the appointments committee has waived the condition (two years' residual service) for him," said the source. Bhattacharya was made the managing director on February 25 last year.

The controversy surrounding the other MD's appointment also played a role in Bhattacharya being promoted to the top job. OP Bhatt was made an MD a few weeks back, even though the post had been lying vacant since January.

Jogesh Agarwal, MD of State Bank of Patiala, was a strong contender for the post, but Bhatt was chosen by the appointments committee on the basis of his performance at the interview taken by the panel.

The source said once Bhattacharya takes over the new assignment formally, Sanjay Bhattacharya, another senior executive of the bank, may be made an MD.