Narasimham was likely to assume charge after completion of certain formalities and issuance of necessary notification by the Government.Narasimham's name was finalised by the nominations committee which was formed to select candidate to replace Agarwal. The committee comprising IDBI chairman G P Gupta, LIC chairman G Krishnamurthy and joint secretary in the banking division A K Jain considered a host of names for the post and the choice was ultimately narrowed down to Narasimham and Tapan Ganguly, executive director of the IFCI. Finally, out ofthe two, the committee decided to forward Narasimham's name to the IFCI board.

Important among those considered by the committee was Punjab National Bank (PNB) chairman Rashid Jilani. However, his name was dropped because of some vigilance cases against him.