Dinesh Khara, the current Chairman of the State Bank of India (SBI), may have his tenure extended as the government is contemplating increasing the retirement age for heads of all public sector banks and LIC. A proposal to raise the retirement age limit for managing directors of public sector banks (PSBs) from 60 to 62 years is also under consideration, according to a senior government official.
Khara, a veteran banker, took over as the chairman of SBI in October 2020 for a three-year term. As per existing norms, the SBI chairman can hold the post until the age of 63 years. Khara will turn 63 in August next year.
A senior government official stated that discussions are underway to increase the age limit for retirement of chiefs of PSBs and Life Insurance Corp (LIC). Simultaneously, talks are also being held to raise the superannuation age for managing directors of PSBs to 62 years from 60 years. However, a final decision is yet to be taken on the retirement age for heads of PSBs and LIC.
Currently, the retirement age of LIC chairman is 62 years. If the proposal is approved, it could result in longer tenures for chiefs and managing directors of PSBs and LIC.
This development has garnered significant attention and has been widely reported in the media. It remains to be seen what decision the government will take and how it will impact the banking and insurance sectors in India.