According to sources, Punjab National Bank chief Rashid Jilani, who was considered the favourite to take over from Agarwal, has not found favour in the corridors of finance ministry and is out of the race now.IFCI executive director T Ganguly, who was also a top contender for the top slot, may be accommodated as joint managing director. "The post of the joint managing director can be created, if the government wants to do so. We will need shareholders' approval," IFCI insiders said.

With the drama over the succession "battle" in IDBI still fresh in public memory, the Centre is likely to clear the appointment of the IFCI chief in time. IDBI chairman SH Khan demitted office on June 30 without handing over charge as the government failedto announce the next chief's name by then.

The five-member nomination panel cleared Narasimham's name at a meeting held on Friday. "The IDBI executive director's name has been forwarded to the ministry. It is likely to be cleared in the next few days," sources said.

When contacted, Narasimham said he was not aware of the development. "I have not been told anything," he said. Ganguly did not make any comment.

Initially, the panel had recommended Jilani's name, which was shot down by the ministry. An old vigilance case against the PNB chief is allegedly the reason behind finance ministry putting its foot down to clear Jilani's name for the top slot.

"The present CMD Agrawal will not get any extension. The PMO will clear the new chief's name at the right time," a finance ministry official said.