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D R Mehta may be financial sector's super-coordinator

Tamal Bandyopadhyay

The finance ministry is toying with the idea of appointing a super-coordinator for the financial sector. Devendra Raj Mehta, who is slated to step down as Securities and Exchange Board of India chairman next month, is tipped to become the first super-coordinator.

State Bank of India chairman Janki Ballabh is likely to step into Mehta's shoes although he does not seem to be too keen to shift.

"The offer has already been made to Ballabh and in-principle acceptance has been sought. At the same time, the ministry is looking into a few other candidates as well and if a suitable candidate is found Ballabh may continue with the bank as continuity at the top level is important for the State Bank," a ministry source said.

According to sources, the short-listed candidates include economist Ashok Lahiri, Bhaskar Ghosh and a bureaucrat Vinod Dhal.

"There were not many takers for the top job in Sebi among the professionals. The government is keen on having a banker for the job. The choice has fallen on Ballabh as he has a clean image and can carry his team along with him," sources said.

In his new position, Mehta's job will be to coordinate among different regulators like Sebi, the Reserve Bank of India as well as the Insurance Regulatory Development Authority.

"This is not the job of a super-regulator. Essentially, the government wants a meeting point of all the regulators for a better appreciation of financial sector developments. Mehta is best suited for the job," said a source. Prior to his Sebi assignment, Mehta had a stint at the RBI as a deputy governor.

If the choice finally falls on Ballabh for the top Sebi job, he will get a three-year term. Ballabh, who became SBI chairman in October 2000 superseding six senior colleagues, would have retired in October this year.

This was the first instance of a SBI chairman being selected not on the basis of seniority. Ballabh had a two-year residual service - a necessary precondition to becoming the chairman which his senior colleagues did not have.

Once Ballabh shifts to Sebi, PN Venkatachalam, managing director of the State Bank of Travancore, will in all probability become the SBI chairman. He will also have a two-year stint since he is due to retire in Mach 2004.

AK Batra, deputy managing director and group head of associate banks, is tipped to succeed the present MD and corporate banking group head Y Radhakrishnan when he retires in June.

Another MD, S Govindarajan, is due to retire in July and the vacancy will be filled by S Krishnamachary, MD, State Bank of Hyderabad. Both Batra and Krishnamachary will have slightly more than a one-year stint and retire in 2003.

If the government insists on a two-year residual service formula for the MD position also, AK Purwar, MD, State Bank of Patiala, and Rajendra Asthana, DMD and chief financial officer or the bank, will get the nod.

Purwar has a long stint till May 2006 while Asthana is slated to retire in February 2004. In effect, Purwar will be eligible for the chairman's post after the next incumbent Venkatachalam steps down.

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