Finmin sets up committee to select new Nabard chairman

KOLKATA: There's a twist in the selection process for the next Nabard chairman. In an unusual move, the finance ministry has formed a fresh search committee after discarding the candidatures of four top bankers who were earlier shortlisted for the top slot.

It is learnt that the new search committee comprises Union financial services secretary Vinod Rai, agriculture secretary PK Mishra and top Reserve Bank of India officials. But no official confirmation was available.

Present Nabard chairman YSP Thorat is to retire on November 30. But finding a successor may take longer with the latest turn of events. In fact, financial circles are abuzz with a possibility of Mr Thorat getting a service extension, in the event the fresh selection takes too long.

Information trickling in indicates that the previous interview panel, consisting of finance secretary D Subbarao and RBI deputy governor V Leeladhar, was not pleased with the interviews of the shortlisted candidates.

Four top bankers including Nabard managing director KG Karmakar and National Housing Bank chairman and managing director S Sridhar appeared for interviews. Two Nabard executive directors — SK Mitra and Amaresh Kumar — were also interviewed. They were shortlisted from a fairly long list of interested candidates.

The financial circles are also apprehensive of the fact that any uncertainty in the selection process may sidetrack 25-year old Nabard’s development role. They feel the institution should not be headless in any circumstances.

“The fundamental issues like flow of concessionary funds from RBI and the government to Nabard, catalysing more credit to the rural sector should be given prominence. Someone who is experienced and dedicated to the cause of the agriculture and rural development of the country should be selected as the chairman. The institution should not headed by someone who is inexperienced and not quite matured to handle the challenges before Nabard,” All India Nabard Employees Association vice president Rana Mitra said.