ORA-29965: The specified binding does not exist
Cause : The binding specified in the DROP BINDING clause is not a valid binding for this operator.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Specify an existing binding for this op in DROP BINDING clause.
Well, the reason for above error is that i have taken the above script from a 11g database and running it on 10g database. 11g has bring some changes in password management. Below code is executed on 11g and user created successfully, which is expected result.