SBI chairman: Dinesh Khara recommended for next chief, no extension for Rajnish Kumar

The Banks Board Bureau on Friday recommended Dinesh Kumar Khara for the post of chairman of the State Bank of India (SBI). The board further said that Challa Sreenivasulu Setty will be in the reserve list for vacancy. Dinesh Kumar Khara and Challa Sreenivasulu Setty are both managing directors of SBI.

"Keeping in view their performance in the interface and their overall experience, the Bureau recommends as follows: Dinesh Kumar Khara for the vacancy of Chairman in State Bank of India. Challa Sreenivasulu Setty as the candidate on the Reserve List for the said vacancy," the BBB said in a statement.

The decision came after the Banks Board Bureau members had interfaced with four managing directors of SBI on Friday. Constituted in 2016, Banks Board Bureau makes recommendations for the appointment of whole-time directors as well as non-executive chairpersons of public sector banks (PSBs).

The present SBI chairman incumbent Rajnish Kumar will demit office on October 7. Kumar was appointed for a period of three years from October 2017. Banks Board Bureau's recommendation made it clear that Rajnish Kumar is not looking at an extension. Kumar was expected to get an extension in the wake of coronavirus outbreak in the country.

Khara, 59, joined SBI as Probationary Officer in 1984. He was appointed managing director of SBI on August 10, 2016 for a period of three years which was later extended by two years after review of his performance. The senior-most managing director looks over global markets and subsidiaries for SBI. Prior to being appointed as managing director of the country's largest lender SBI, Khara was the chief executive of SBI Funds Management Pvt Limited (SBIMF).

Commenting on extension of loan moratorium, Dinesh Khara earlier said SBI will consider loan restructuring for eligible borrowers after the end of moratorium period on August 31. "Restructuring of eligible loans will also be considered as and when the moratorium comes to an end at the end of August," he said.

On managing COVID-19 pandemic, Khara said the the lender has mostly followed the strategy adopted by the government in helping the country with some customisation wherever required. He added corporates are "conserving cash" and in a wait and watch mode at present. There is “flight to safety” tendency displayed by the major corporates, he further mentioned.

The Appointments Committee of the Cabinet (ACC) earlier appointed Ashwani Bhatia as the managing director of SBI. Bhatia is currently working as the managing director and chief executive officer at SBI Mutual Fund. Bhatia will be appointed in place of P K Gupta who superannuated on March 31.