New Delhi, Nov. 16: The government will announce the appointment of the managing director of National Agricultural Bank for Rural Development (Nabard) next month by promoting a senior official from within the organisation. The post has been vacant for the past year.
Nabard, the country’s apex bank for financing agricultural projects, has been without its top two officials after chairman Y. C. Nanda retired in June, while managing director M. V. S. Chalapathi Rao retired last December.
Finance ministry sources said the government had initially planned to appoint a state-run bank official to lead Nabard but was forced to change it after protests from Nabard employees.
“The government is expected to promote one of the three executive directors to the post of managing director and keep the chairman’s post vacant for the time being,” he said.
The employees had urged Prime Minister Atal Bihari Vajpayee to intervene and speed up the appointment process since the absence of top officials is hurting it's operations and farm financing activities.
“Nabard is a complex and sensitive institution since more than two-thirds of the country’s population live off it and an official with commercial banking operations would not be able to provide the necessary guidance and direction required,” said a senior Nabard official.
Sources also said the appointment of chairman and managing director has been stuck as senior officials of scheduled commercial banks are lobbying for the post.
Nabard officials said the appointment of Vepa Kamesan, deputy governor of the Reserve Bank of India, as the institution’s co-ordinator has only hampered the interest of the institution.
Kamesan was asked to co-ordinate the affairs of Nabard until a regular chairman is appointed or until his retirement.