New Delhi, March 26: The board of state-run term lender Industrial Development Bank of India has recommended G.. Godbole, executive director of the institution, for the post of chairman and managing director.

The recommendation has been submitted to the banking division of the finance ministry and the appointment will be subject to the approval of the Appointments Committee of the Cabinet, sources said.

The search for a new chief has intensified as the tenure of the current chairman M. Damodaran is scheduled to expire next month.

“This is the third time that Godbole’s cadidature has been recommended by the board and in all probability he would be selected for the job,” said a top government official, adding that Godbole is the senior-most among the executive directors which includes R. Jayaraman Iyer and A. K. Doda.

According to the new salary-package, Godbole would earn a yearly sum of Rs 36 lakh coupled with dearness allowance (DA) and rent-free furnished accommodation.

Earlier, there was a move to hire a professional from the private sector. Among the candidates discussed was Ajay Singh, son of former Prime Minister V. P. Singh, who had worked with Lehman Brothers. But Singh is out of the race. The other names which were also considered by the government includes Jaimini Bhagwati, a foreign service officer and currently posted at the World Bank and T.. Thakur, chairman of Power Trading Corporation (PTC).

“Godbole’s candidature assumes significance as a decision would have to be made to merge with IDBI Bank or sell it off,” said a senior IDBI official.