India considers raising retirement age for state-owned bank bosses

Indian Overseas Bank

26/08/2023 15:52

By Nikunj Ohri
       NEW DELHI, Aug 26 (Reuters) - India is considering
raising the retirement age for chairmen and managing directors
of state-owned banks, which control over 60% of the banking
system's assets, a government official said on Saturday.
    The proposal under consideration is to raise the age limit
for the chairman of the country's largest lender, State Bank of
India (SBI)  SBI.NS , to 65 years from 63 years, and that for
managing directors of other state-owned banks to 62 years from
60, the official said.
    SBI is governed by separate legislation from other
government-owned banks.
    "The plan is still being considered. A final decision has
not been taken," the official said, declining to be named as
discussions are ongoing.
    The age limit for state-run bank chiefs is much lower than
their private sector peers, who retire at 70 and have longer
tenors. Analysts have often cited this as a reason for a lack of
continuity in strategy at state-owned lenders.
    Chiefs of state-run banks are generally appointed for three
years and can be given an extension based on their performance.
    Separately, the government is planning to give a 10-month
extension to present SBI Chairman Dinesh Khara who is slated to
retire in October-end, the official said.

 (Reporting by Aditi Shah; editing by Christina Fincher)
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
Reuters Messaging: twitter: @aditishahsays))