Gloomy UTI Bank staff say Nayak's exit result of a sly move by UTI-I

The sentiment was of overwhelming gloom as one walked into the corporate headquarters of UTI Bank in Maker Towers 'F', Cuffe Parade, Mumbai, on Thursday.

The third-largest private sector bank has just lost the man credited for its impressive turnaround.

In what is seen as a move to show P J Nayak, chairman and managing director the door, the UTI Bank board met on Wednesday and decided to split the post of chairman and managing director.

Nayak has been heading the bank since January 1, 2000, and most employees had hoped he would be given a second term. His current five-year term expires on December 31, 2004.

"UTI-I (the majority stakeholder in the bank) officials have played their cards very slyly. They knew that Nayak had done a good job and could not be asked to leave on the grounds of lack of performance. They knew he would not accept a demotion. Hence they decided to stage a proposal to split the post and offered him the post of managing director," said an angered top official from the bank.

Despite the high drama of Wednesday which ran till 9:30 p.m., Nayak was in office at sharp 9 o'clock as usual. At the routine morning business meeting, there was no mention of the previous day's happenings and senior officials were amazed at the exiting boss's composure.

So, will Nayak's exit trigger an exodus from the top and middle management levels?

There are already signs of insecurity. Said a disturbed senior bank official, "My first emotion was disappointment and gloom and when I analyse my future in this bank there's uncertainty in the air. This could lead to good talent leaving the bank."

The lift, the canteen, the corridors were abuzz with employees lamenting over the fate of the bank.

A mega-merger with IDBI, IDBI Bank and UTI Bank is what seems to be looming ahead. "God only knows what Damodaran (the UTI-I chief) will do with us. IDBI has just swallowed IDBI Bank, we may be the next on line. That's a prospect I would not like to live through," said a junior officer in the lift.

Admired for intellectual brilliance, integrity and humility, Nayak is seen to be very down to earth and easily approachable to employees. "If any bank employee invites him for a wedding, you can be sure he will be there to attend the function," said a senior official.

What seems to be amazing is that all employees had only praise for Nayak. There were some tearful narrations from sub-ordinates; some others hoped for a miracle to bring the team leader back.