
The highly anticipated interview for the position of chairman at the State Bank of India (SBI) has encountered an unforeseen hurdle. Originally scheduled for Tuesday, the interview has now been postponed, as confirmed by two individuals familiar with the situation.
Late on Monday, SBI, the largest bank in the country, received a notice stating the deferral of the interview, with no indication of a new date provided, according to one of the sources who wished to remain anonymous.
The reasons behind this delay remain unknown.
The Financial Services Institutions Bureau (FSIB), an autonomous organization under the central government, had planned to conduct the interviews on Tuesday to recommend a suitable candidate for the chairman’s role.
The current chairman, Dinesh Kumar Khara, is set to retire on August 28, with the expectation that the new chairman will assume office on the same day.
The front runners for the position are three managing directors of State Bank of India – C.S. Setty, Ashwini Kumar Tewari, and Vinay M. Tonse. Alok Kumar Choudhary, the fourth managing director, is set to retire at the end of June.
Led by Bhanu Pratap Sharma, former secretary of the Department of Personnel and Training (DoPT), the FSIB is responsible for appointing senior executives to public sector financial institutions.
The recommendations from the FSIB are then forwarded to the Appointments Committee of the Cabinet, led by the prime minister, for final approval.
The appointment of a new chairman comes at a time when SBI’s financial performance has shown significant improvement.
“Khara’s main achievement is his ability to enhance the bank’s financial performance. Since assuming the role of chairman, the share price has skyrocketed from ₹250 to ₹820 per share,” stated a former senior SBI official. “While his actions may not have been perceived as groundbreaking, Khara has done an admirable job in these uncertain times.”
As of March 2024, the bank reported a record net profit of ₹20,698 crore. The asset quality is the best it has been in nine years, with net non-performing assets accounting for only 0.57% of total assets, compared to 1.23% when Khara assumed the position. SBI’s bad loan portfolio stood at ₹84,276 crore as of March 2024.
there may be political reasons to postponed the interview.Because FSIB works as per instructions of the Govt. of India.