Few bankers or bureaucrats have had a more turbulent career than the UTI Bank chief, Dr P J Nayak. In a successful transition from bureaucrat to banker, he steered the bank to growth, profitability and excellence in service quality. He is also hugely respected and even hero-worshipped by the organisation. Part of the appeal is his uncompromising integrity; but apparently that is not good enough in India and he has had to walk away from the job every three years. In 2001, he went on leave when media leaks said that the Joint Parliamentary Committee (JPC) had made negative references to him in connection with an aborted merger with Global Trust Bank. The JPC made no such reference and he returned after the Board reaffirmed confidence in his leadership. In December 2004, he almost fell victim to Unit Trust of India’s attempt to pull the bank into its fold. A move to split the post of Chairman and Managing Director (CMD) was proposed, fully aware that Nayak would resign. The Finance Minister’s drastic and personal intervention scotched the move and ensured Nayak’s return. This time around, the ill-advised demand to bifurcate the CMD’s post has come from the Reserve Bank of India (RBI) as a condition to renewing his term. Again, Nayak has preferred to quit in July when his current term ends. The media has already begun to speculate about a hunt for a successor, but Nayak loyalists still hope the central bank will see sense.

Perverse policies

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