The Indian government is contemplating a two-year increase in the retirement age for Managing Directors (MDs) and Chief Executive Officers (CEOs) of public sector banks.
A report by ET suggests that the retirement age for the Chairman of the State Bank of India (SBI) could also potentially rise from 63 to 65.
This move would have implications for Dinesh Khara, the current SBI Chairman, who is set to turn 63 in the coming year.
Khara’s current term concludes in October, and an extension is yet to be confirmed.
New Retirement Norms Extend to LIC Chair
An official familiar with the matter disclosed that the retirement age for leaders of public sector banks, excluding SBI, is currently 60 years.
This limit could be extended to 62 years. Simultaneously, the retirement age for the Chairman of the Life Insurance Corporation (LIC) would also be raised to 65 years.
Notably, the government had already prolonged the maximum tenure for MDs and CEOs from 5 to 10 years last year.
This same regulation applies to full-time directors in public sector banks.
Past Government Notification
Last year, on November 17, 2022, the government released a notification that increased the CEO and MD tenure in government banks from 5 to 10 years.
However, despite this update, the retirement age remained unchanged at 60 years.
This regulation also extends to full-time directors of public sector banks.
