MUMBAI, May 1: Reserve Bank of India deputy governor Y V Reddy has quit the State Bank of India board. The banking circle has interpreted the move as a prelude to Reddy's return to the North Block as the finance secretary replacing Montek Singh Ahluwalia. Before joining the central bank as a deputy governor, Reddy was secretary, banking division, in the ministry of finance.RBI insiders, however, said Reddy has been too busy with his desk work and expressed his desire to get out of the SBI board sometime back. Jagadish Capoor, another RBI deputy governor, joined the SBI board. Capoor attended the SBI board meeting on Thursday at which the bank took the decision to cut its prime lending rate (PLR) following the one percentage point cut in bank rate and repo rate on April 29.Incidentally, Reddy was present at the last SBI board meeting in early April which was specially convened to decide on a lending rate cut in early April.Reddy was the RBI nominee on the SBI board under Section 19 (f) of the SBI Act1955. The current banking secretary C M Vasudev is also on the SBI board as a nominee of the centre under Section 29 (e) of the Act.According to sources in RBI, Andhra Pradesh chief ministry Chandrababu Naidu wanted Reddy as the chief secretary of the southern state. Former RBI governor and the current governor of Andhra Pradesh C Rangarajan was also keen on Reddy's taking over as the chief secretary. However, the RBI deputy governor, an IAS officer of the AP cadre, has declined the offer.RBI insiders feel Reddy will continue to be the deputy governor and not shift to the North Block. Revenue secretary N K Singh, a 1964 IAS officer, may ultimately step in Ahluwalia's shoes.Ahluwalia who has survived both Manmohan Singh and P Chidambaram - two former finance ministers - is likely to be appointed as member secretary, Planning Commission, said sources in the Bharatiya Janata Party (BJP).Before taking over as RBI governor in November last year, Bimal Jalan was member secretary, Planning Commission.Rangarjan who had received two one-year extensions after his full term as the RBI governor left one month ahead of the expiry of his second term on November 21.Meanwhile, Unit Trust of India chairman G P Gupta has emerged as the frontrunner for the top slot at the Industrial Development Bank of India (IDBI) which will fall vacant after S H Khan retires in June.According to sources in New Delhi, Deepak Parekh - who was considered for the post - is reportedly not keen on moving out of HDFC. "Even after being appointed as the chairman of IDBI, Parekh can continue as the chairman of IDFC as that is a non-executive post. However, he will have to quit HDFC," a finance ministry source said.Going by the IDBI Act, the chairman's post cannot be a non-executive one and hence Parekh is unlikely to get the nod as he is not willing to quit HDFC. Parekh became the chairman of Glaxo India & Burroughs Wellcome India on Thursday.According to sources, decision on filling in vacancies at the top slots of a numberof financial intermediaries is likely to be taken in mid-May.Since Parekh is virtually out of the race, UTI chairman G P Gupta is almost certain to get the top slot at IDBI. For Gupta, the former IDBI executive director, it will be a homecoming after a gap of over a year. Sources, however, do not rule out the possibility of Khan getting in extension.
