On Friday, Banks Board Bureau (BBB) recommended Dinesh Kumar Khara to take over as the next State Bank of India (SBI) chairman. This is as the 3-year term of current SBI Chairman Rajnish Kumar will end in early October. Khara is the senior most MD at the bank.
"Keeping in view their performance in the interface and their overall experience, the Bureau recommends Dinesh Kumar Khara for the vacancy of Chairman in State Bank of India and Challa Sreenivasulu Setty as the candidate on the Reserve List for the said vacancy," the bureau said in a release on its website.
For public-run bank, retirement age is 60 years while for the private banks it is 65 years. There have been instances in the past when chairman of state-run banks have been granted extension beyond 60 years to a maximum of 5 years, but the Bank Boards Bureau which interviewed candidates for the vacancy of SBI's Chairman has cleared that Kumar will retire come October.
Also at the same time, board nominated Challa Sreenivasulu Setty, another MD at the bank as the reserve candidate.
In accordance with the norms, Chairman of the PSB is appointed from amongst the serving MDs at the bank. At present, four MDs at the bank are Dinesh Kumar Khara, Arijit Basu, C S Setty and Ashwani Bhatia.
Now the recommendation of Khara for the position of SBI's Chairman shall be put before the appointments committee of the cabinet (ACC), headed by the PM.