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 reappointment on Monday. "Selvam has been reappointed as CMD of UnionBank for 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 -- 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 rounds in the corridors of North Block 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 can also be considered for Bank of India, sources point out.

Initially, the finance ministry was not averse to the idea of appointing Canara Bank executive director RJ Kamath as Bank of India chief.