The focus of foreign institutional investors, which have been chasing bank stocks over the last one-year, has shifted from the quality of bank assets to the quality of management.

FIIs are particularly concerned that the retirement of chief executive officers of some big commercial banks over the next few months would leave a power vacuum. The FIIs feel that the second line of management may not be ready as yet to take over the mantle.

"The CEO should have a relatively longer stint at the top only then can the bank perform," a leading FII representative said.

Michael Bastion, chairman and managing director of Syndicate Bank, will be the first to hang up his boots in August. He will be followed by Canara Bank CEO RV Shastry in October and Bank of Baroda head PS Shenoy in February next year.

While FIIs have a small exposure in Syndicate Bank, less than 1 per cent as on March 31 2004, their stake in Canara Bank jumped from 1.64 per cent in March last year to 11.76 per cent in March 2004.

FIIs' stake in Bank of Baroda, which was 5.82 per cent in March last year, increased to 16.98 per cent in March 2004.

Four more bank CEOs will retire next year. They are: Punjab National Bank's SS Kohli, Oriental Bank of Commerce head BD Narang, Bank of India chief M Venugopalan (all in April 2005) and Dalbir Singh of Central Bank of India (June 2005).

Except for Central Bank, others are listed banks and they have all substantially big asset bases. The FIIs raised their stake in Oriental Bank from 10.30 per cent in March last year to 15.98 per cent in March 2004.

Their exposure to Punjab National Bank is 5.51 per cent and to Bank of India 4.77 per cent in March.