Centre considers raising retirement age for public sector bank heads, MDs

State Bank of India Chairman Dinesh Khara is likely to get an extension as the government is considering relaxing the retirement age of chiefs of all public sector banks and LIC.

The proposal before the government also includes hiking the retirement age limit of managing directors of public sector banks (PSBs) to 62 years, from the current 60 years, a senior government official said on Saturday.

Veteran banker Khara took over as the chairman of SBI in October 2020 for three years.

Under existing norms, the SBI chairman can hold the post until the age of 63 years. Khara attains 63 years in August next year.

“There is a discussion to increase the age limit for retirement of chiefs of PSBs and Life Insurance Corp (LIC). Simultaneously, discussions are on for raising superannuation age for managing directors of PSBs to 62 years from 60 years,” the official said.

A final decision is yet to be taken on the retirement age for heads of PSBs and LIC, the official added.

Currently, the retirement age of LIC chairman is 62 years.