MUMBAI: The government is kicking off the process to select the next chairman of the State Bank Group from Tuesday.
The Financial Services Institutions Bureau (FSIB) is mandated to choose the chairmen and managing directors/chief executives of public sector financial institutions such as banks, LIC and general insurers. Incumbent chairman Dinesh Kumar Khara’s extended tenure is ending on August 28, 2024. He was given a one-year extension last October till he attains 63, which is August 28. He had a three-year term as the chairman. Khara succeeded Rajnish Kumar superannuated in October 7, 2020.
The FSIB will begin the two-day meet from May 21 to recommend a candidate for the post of the chairman, an FSIB source told The New Indian Express on Monday.
Top SBI management consists of chairman, which is a fully executive job unlike in other state-run banks where chairmen is non-executive, and four MDs who are all technically eligible to attend the selection process for the post the chairman, provided they have one year of service left.
The second-rung management consists of about 10 deputy managing directors (DMDs) and dozens of chief general managers (CGMs). DMDs and CGMs are eligible to become MDs. All heads of SBI subsidiaries like SBI Life, SBI General, SBI Caps and SBI Cards are headed by persons with DMD ranks in the bank.
Going by tradition, all four MDs of SBI are eligible for the interviews for chairman’s post. The incumbent MDs are CS Setty, Ashwini Kumar Tewari, Alok Kumar Choudhary and Vinay M Tonse. But Choudhary is not eligible given that he is scheduled to retire on June 30.
The FSIB has recommended Rana Ashutosh Kumar Singh as the new MD to fill the vacancy being created by the retirement of Choudhary. Similarly Rana Ashutosh Singh is not eligible given that he assumes office only after June 30.
Tradition, and by the SBI Act mandate the government appoints SBI chairman from within the ranks. Though there have been a few exceptions in the past. The few exceptions when outsiders became chairman was first in 1985, when the government appointed DN Ghosh, an Indian Audit & Account Services officer, as the chairman. He was at the helm for almost four years.