Bank of Rajasthan under RBI scanner

MUMBAI: Bank of Rajasthan, an old generation private sector bank, has come under RBI's scanner. The central bank is unlikely to clear the reappointment of Pravin Kumar Tayal, major promoter of the bank, as chairman of BoR, said sources. He would also have to give up his post as director by December. Promoter and promoter group holding in BoR stood at 44.16% at the end of June 2006.
PK Tayal was not available for comment and senior officials were not reachable.
The agency handling the bank's account said shareholders had approved Tayal's re-appointment as director in the AGM held on September 8, 2006. Sources indicate that this appointment will become null and void post December 8, 2006, as Tayal will complete eight years in BoR. Tayal was appointed non executive chairman of the bank since 1999 to 2004.
According to provisions of the Banking Regulation Act 1949, no director of a banking company, other than its chairman or whole-time director shall hold office continuously for a period exceeding eight years.