Pressure is continuing to build on the AIB chief executive, Eugene Sheehy, ahead of the bank's annual general meeting on 13 May when the government will be able to vote against his re-election to the board.

"No decision has been made yet,'' the government said officially last week when asked how the Minister for Finance, Brian Lenihan, might cast his 25% vote when the entire AIB board puts itself forward seeking re-election.

Government sources told the Sunday Tribune AIB's conduct in the next fortnight in talks over the National Asset Management Agency (Nama), will be key to determining how the minister uses his votes.

"We have an open mind so far, but the next two weeks will tell all. If AIB is constructive that will certainly play a part in the deliberations,'' said a senior government source. He said a "sword of Damocles" was still hovering over Sheehy however.

AIB has steadfastly rejected suggestions that Sheehy will ultimately have to step down. The bank said last week it had not met the government since the budget and had not even given its views to government on Nama.

The bank holds an egm in the morning of 13 May and in the afternoon the AGM, with the government on board as a 25% shareholder, will take place. This provides the moment when the government can choose to back the current board or ask its members to step down.

At a recent press conference, Lenihan said he had not made his mind up on Sheehy's position. However there was a clear implication that AIB's senior director could be living on borrowed time.

If Sheehy departs from the bank it would bring to an end a long list of departures at the top of Irish banking. Among those to leave their institutions in the last six months are David Drumm and Sean FitzPatrick at Anglo Irish Bank, Denis Casey at Irish Life & Permanent, Brian Goggin at Bank of Ireland and Michael Fingleton at Irish Nationwide.

Fergus Murphy at EBS is seen as the only banker likely to remain in his position in the long term. He only started in the role in January 2008 and the extensive property exposures built up by EBS mainly pre-dated his arrival.

Sheehy told reporters in March that he believed he was the right man to lead AIB towards recovery, but the institution is now facing effective nationalisation as its loan portfolio gets aggressively marked down and it requires additional capital.