In a parallel development, the ministry on Monday accepted Bank of India chairman MG Bhide's resignation with immediate effect. Bhide had put in his papers on January 23 and sought to be relieved with effect from May 1.

However, unable to identify his successor the finance ministry asked him to continue for the time-being. Subsequently, Bhide went on leave. "It has been decided to accept your resignation with immediate effect," a finance ministry communique - sent to Bank of India CMD on Monday - said.

Selvam's term as CMD of Union Bank came to an end on June 3. Initially, he got an extension for a month (up to July 3) which was later extended by another month. The finance ministry notified his re-appointment on Monday.

"Selvam has been re-appointed as CMD of Union Bankfor a further period up to March 31, 2000," a Union Bank release said. With a new executive director (S Gopalakrishnan) at the helm of Bank of India, the finance ministry, it seems, is in no hurry to appoint the CMD of the bank.

With Selvam pushed out of the race for the top slot, the new names doing the rounds in North Block corridors for the Bank of India chief's post are Allahabad Bank CMD Harbhajan Singh and Dena Bank chief Ramesh Mishra. Even Indian Bank chairman S Rajagopal may be considered for Bank of India, sources point out.