New Delhi, Oct 14: The government is set to appoint UTI chief M Damodaran, who is also holding the concurrent charge of IDBI, as the full time chairman of IDBI. According to officials here, Damodaran is to be given a five-year tenure as the head of IDBI, which is being converted into a bank. Damodaran, who had earlier served as joint secretary in the banking division of the finance ministry and as OSD in charge of weak banks in the RBI, was told to take over as chairman of UTI in mid ’01 after a crisis in the mutual fund, which resulted in the sacking of the then chairman PS Subramanyam.

A five-year term at IDBI would mean that the IAS officer from the Tripura cadre would be past 60 when he completes his tenure at the institution. This is the first time that an officer from the civil services has been chosen to head IDBI.
The government, it has been indicated, would scout for a candidate to take over from Damodaran as the chief of UTI. Bureau Report