Dinesh Khara of SBI may receive a 10-month extension

22 Aug 2023 , 01:33 PM

Dinesh Khara, the chairman of SBI, is most likely to receive a prolongation till August 2024, giving him nearly an additional year in office when his present term expires in October.

As of this now, the SBH chairman can serve a term of up to 63 years, but Khara will turn 63 in August. Other public sector bankers, who were still a few months away from reaching the age of superannuation, were not allowed more time in office.

A further two years will be added to Ashwini Kumar Tewari’s contract as MD, which expires in January 2024.

The succession strategy at SBI might also be thrown off by an extension to Khara and Tiwari. The current MD, C. S. Setty, was widely believed to be in a position to succeed his present employer. After Swaminathan J was named the deputy governor of the RBI, Alok Kumar Choudhary was named the third MD to the board of the largest lender in the nation.

Separately, a proposal to raise the retirement age for the heads of SBI and LIC to 65 years is being discussed by the Financial Services Institution Bureau, the organization in charge of choosing the leaders of state-run banks, insurance companies, and financial institutions. However, the administration has not yet made a judgment about the matter.

Khara was given a three-year term, accepted one of the most sought-after positions in the financial services sector during the pandemic, and oversaw the recovery. The bank recorded a 178% increase in profits to Rs 16,884 crores during the most recent quarter.

O P Bhatt and Arundhati Bhattacharya recently served more than four-year terms as SBI chairman, whereas Rajnish Kumar’s predecessor served a three-year term.

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