Banking secy post to be downgraded

Three candidates are expected to run for the post of additional secretary (banking). Among the three candidates, the present UTI chief M. Damodaran is expected to be the top contender for the post.

At present, Damodaran is the chairman and managing director of UTI AMC (P) Ltd (UTI-II). UTI was formally split on February 1, 2003, wherein, UTI-I had under it US-64 and all assured return schemes, while UTI Mutual Fund had all net asset value-related schemes.

Damodaran had earlier worked in the finance ministry as joint secretary in the banking division at the time when C. M. Vasudev was the additional secretary (banking). According to sources, since Damodaran already has a wide experience in the banking division, apart from his tenure as the UTI chief, he would be probably preferred as the incumbent.

The new proposed additional secretary (banking) would look after both banking and insurance. Earlier, in the finance ministry there used to be one additional secretary banking and another official in charge of insurance separately. After Devi Dayal’s tenure as additional secretary (banking), the government decided to merge the two post in banking and insurance and uprgade the post to that of a secretary.

But now with a minister of state in charge of banking, insurance and expenditure the finance ministry can do away with a secretary (banking) post, sources said.