In Mumbai, the eagerly awaited interview to fill the chairman’s seat at the State Bank of India (SBI) has encountered an unexpected setback. Initially slated for Tuesday, the interview has been deferred, as per two individuals familiar with the situation.
Late Monday, SBI, India’s largest bank, received notification of the postponement without a new interview date provided, disclosed one of the sources under anonymity.
The cause behind this delay remains undisclosed.
The Financial Services Institutions Bureau (FSIB), an independent body under the central government, had scheduled interviews for Tuesday to propose a candidate for the chairman position. The current chairman, Dinesh Kumar Khara, is set to retire on August 28, with the successor expected to assume duties the same day.
The top contenders for the role include three managing directors from the State Bank of India—C.S. Setty, Ashwini Kumar Tewari, and Vinay M. Tonse. Alok Kumar Choudhary, the fourth managing director, is slated for retirement by the end of June.
Under the leadership of Bhanu Pratap Sharma, former secretary of the Department of Personnel and Training (DoPT), the FSIB oversees the appointment of senior executives to public sector financial institutions. Recommendations are forwarded to the Appointments Committee of the Cabinet, chaired by the Prime Minister, for final approval.
The selection of a new chairman arrives at a time when SBI has witnessed notable financial strides. A former senior SBI official noted, “Khara’s principal achievement lies in the substantial improvement in the bank’s financial performance. Since assuming the chairman’s role, the share price has surged from ₹250 levels to ₹820 per share.” While Khara’s tenure may not have been marked by groundbreaking innovations, he has effectively navigated through uncertain times.
As of March 2024, the bank recorded a record net profit of ₹20,698 crore. Asset quality has reached its highest point in nine years, with net non-performing assets accounting for 0.57% of total assets, down from 1.23% when Khara assumed office. SBI’s bad loan portfolio stood at ₹84,276 crore at the end of March 2024.
