R H Patil in fray for UTI Mutual top job

Former National Stock Exchange chairman R H Patil is one of the top contenders for the post of chairman of UTI Mutual Fund, following the resignation of M Damodaran in December 2004.

Further, one of the current executive directors is set to be elevated to the position of chief operating officer and managing director.

Patil is currently the chairman of the Clearing Corporation of India Ltd (CCIL). When contacted by Business Standard, Patil said, "I have no knowledge of it."

Sources familiar with the situation both within and outside UTI MF said that Patil is expected to be appointed as the non-executive chairman and would have the mandate of leading the merger or sale of the fund to one of its four sponsors.

Meanwhile, D S R Murthy, the most senior executive director, is in contention for the post of managing director and chief executive officer.

With nearly 23 years in the UTI (he joined the organization in 1982), including around four-and-a-half years as the executive director of UTI Mutual, Murthy is most senior executive director on the rolls. Currently, he is in charge of the fund and has been attending board meetings for the last 10 to 12 years.

Sources said Murthy also has the advantage of having worked in almost all functional areas of UTI, including dealing, operations, investment management, offshore funds and even human resources.

When contacted Murthy said, "I do not have any information on this." Sources said the ministry as well as the sponsors are in favour of a UTI insider holding the post of operational head.

Former LIC chairman S B Mathur was appointed head of UTI-I after Damodaran called it quits, and there was widespread expectation that he would be appointed the head of UTI Mutual Fund as well.

Ajeet Prasad was elevated to post of executive director last year and also holds a lot of clout within the organisation. But surces said he would be totally focussed on the running of the newly formed asset reconstruction company, which is expected to emerge as an important player in that area in the future.

The four sponsors of UTI Mutual Fund -- State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda -- have to agree on the candidate, and the formal appointment will be made by the sponsors according to the procedure.

UTI Mutual Fund currently manages assets of slightly over Rs 20,000 crore.